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Should Value Investors Buy DecisionPoint Systems (DPSI) Stock?

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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.

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.

One company to watch right now is DecisionPoint Systems (DPSI - Free Report) . DPSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 23.46. This compares to its industry's average Forward P/E of 26.31. Over the past year, DPSI's Forward P/E has been as high as 51.55 and as low as 14.99, with a median of 24.09.

Another notable valuation metric for DPSI is its P/B ratio of 4.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DPSI's current P/B looks attractive when compared to its industry's average P/B of 8.36. Over the past year, DPSI's P/B has been as high as 5.56 and as low as 1.71, with a median of 2.78.

These are only a few of the key metrics included in DecisionPoint Systems 's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DPSI looks like an impressive value stock at the moment.


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