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Is DeNA Co (DNACF) a Great Value Stock 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.

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.

DeNA Co (DNACF - Free Report) is a stock many investors are watching right now. DNACF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.13 right now. For comparison, its industry sports an average P/E of 23.07. Over the last 12 months, DNACF's Forward P/E has been as high as 16.19 and as low as 8.09, with a median of 11.91.

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. DNACF has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.61.

Finally, our model also underscores that DNACF has a P/CF ratio of 4.62. 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. DNACF's P/CF compares to its industry's average P/CF of 15.13. DNACF's P/CF has been as high as 6.94 and as low as 4.51, with a median of 5.36, all within the past year.

Another great Internet - Services stock you could consider is Sify Technologies Limited (SIFY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Sify Technologies Limited is trading at a forward earnings multiple of 22.71 at the moment, with a PEG ratio of 1.14. This compares to its industry's average P/E of 23.07 and average PEG ratio of 1.51.

SIFY's price-to-earnings ratio has been as high as 37.14 and as low as 19.28, with a median of 22.99, while its PEG ratio has been as high as 1.86 and as low as 0.96, with a median of 1.15, all within the past year.

Furthermore, Sify Technologies Limited holds a P/B ratio of 1.89 and its industry's price-to-book ratio is 5.06. SIFY's P/B has been as high as 3.82, as low as 1.79, with a median of 2.90 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 DeNA Co and Sify Technologies Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DNACF and SIFY feels like a great value stock at the moment.


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