Is Deluxe (DLX) a Great Value Stock Right Now?

DLX

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.85, which compares to its industry's average of 10.16. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 6.76, with a median of 8.45.

Investors should also recognize that DLX has a P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.76. Over the past year, DLX's P/B has been as high as 3.50 and as low as 1.79, with a median of 2.54.

Finally, investors should note that DLX has a P/CF ratio of 6.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DLX's P/CF compares to its industry's average P/CF of 10.43. DLX's P/CF has been as high as 10.33 and as low as 5.70, with a median of 7.79, all within the past year.

These are only a few of the key metrics included in Deluxe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DLX looks like an impressive value stock at the moment.

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