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Is Deutsche Post (DPSGY) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Deutsche Post . DPSGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.16. This compares to its industry's average Forward P/E of 11.49. Over the past 52 weeks, DPSGY's Forward P/E has been as high as 14.28 and as low as 7.70, with a median of 10.42.

Investors should also recognize that DPSGY has a P/B ratio of 1.75. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.25. DPSGY's P/B has been as high as 3.96 and as low as 1.49, with a median of 2.23, over 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DPSGY has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.6.

Finally, our model also underscores that DPSGY has a P/CF ratio of 3.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.73. Within the past 12 months, DPSGY's P/CF has been as high as 8.16 and as low as 3.39, with a median of 5.17.

Universal Logistics (ULH - Free Report) may be another strong Transportation - Services stock to add to your shortlist. ULH is a # 2 (Buy) stock with a Value grade of A.

Universal Logistics also has a P/B ratio of 2.43 compared to its industry's price-to-book ratio of 3.25. Over the past year, its P/B ratio has been as high as 2.91, as low as 1.43, with a median of 1.93.

These are just a handful of the figures considered in Deutsche Post and Universal Logistics'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 DPSGY and ULH is an impressive value stock right now.


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