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Should Value Investors Buy These Business Services Stocks?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is DLH (DLHC - Free Report) . DLHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.28 right now. For comparison, its industry sports an average P/E of 12.54. Over the last 12 months, DLHC's Forward P/E has been as high as 16.98 and as low as 11.11, with a median of 13.39.
Finally, investors should note that DLHC has a P/CF ratio of 9.44. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.89. Over the past year, DLHC's P/CF has been as high as 15.21 and as low as 8.25, with a median of 9.50.
Another great Staffing Firms stock you could consider is Randstad Holding (RANJY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Randstad Holding holds a P/B ratio of 1.95 and its industry's price-to-book ratio is 2.80. RANJY's P/B has been as high as 2.86, as low as 1.75, with a median of 2.46 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH and Randstad Holding are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC and RANJY feels like a great value stock at the moment.
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Should Value Investors Buy These Business Services Stocks?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is DLH (DLHC - Free Report) . DLHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.28 right now. For comparison, its industry sports an average P/E of 12.54. Over the last 12 months, DLHC's Forward P/E has been as high as 16.98 and as low as 11.11, with a median of 13.39.
Finally, investors should note that DLHC has a P/CF ratio of 9.44. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.89. Over the past year, DLHC's P/CF has been as high as 15.21 and as low as 8.25, with a median of 9.50.
Another great Staffing Firms stock you could consider is Randstad Holding (RANJY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Randstad Holding holds a P/B ratio of 1.95 and its industry's price-to-book ratio is 2.80. RANJY's P/B has been as high as 2.86, as low as 1.75, with a median of 2.46 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH and Randstad Holding are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC and RANJY feels like a great value stock at the moment.