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Are Investors Undervaluing DHI Group (DHX) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

DHI Group (DHX - Free Report) is a stock many investors are watching right now. DHX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.92 right now. For comparison, its industry sports an average P/E of 22.55. Over the past year, DHX's Forward P/E has been as high as 19.70 and as low as 8.06, with a median of 12.48.

We also note that DHX holds a PEG ratio of 0.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHX's PEG compares to its industry's average PEG of 1.51. DHX's PEG has been as high as 1.31 and as low as 0.51, with a median of 0.69, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DHX has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.93.

These are just a handful of the figures considered in DHI Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DHX is an impressive value stock right now.


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