Are Investors Undervaluing Dish Network (DISH) Right Now?

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Dish Network is a stock many investors are watching right now. DISH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors should also recognize that DISH has a P/B ratio of 1.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.19. Within the past 52 weeks, DISH's P/B has been as high as 2.18 and as low as 1.36, with a median of 1.76.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DISH has a P/S ratio of 1.23. This compares to its industry's average P/S of 2.22.

Finally, investors will want to recognize that DISH has a P/CF ratio of 8.89. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.06. Within the past 12 months, DISH's P/CF has been as high as 11.01 and as low as 3.76, with a median of 8.10.

Value investors will likely look at more than just these metrics, but the above data helps show that Dish Network is likely undervalued currently. And when considering the strength of its earnings outlook, DISH sticks out at as one of the market's strongest value stocks.

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