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Is D S SMITH (DITHF) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is D S SMITH (DITHF - Free Report) . DITHF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.99, while its industry has an average P/E of 11.54. Over the past year, DITHF's Forward P/E has been as high as 8.84 and as low as 7.57, with a median of 8.08.

Investors should also recognize that DITHF has a P/B ratio of 0.87. The P/B ratio pits a stock's market value against 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 2.19. Over the past 12 months, DITHF's P/B has been as high as 0.95 and as low as 0.86, with a median of 0.87.

Another great Paper and Related Products stock you could consider is Klabin (KLBAY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Klabin are currently trading at a forward earnings multiple of 5.18 and a PEG ratio of 0.83 compared to its industry's P/E and PEG ratios of 11.54 and 1.67, respectively.

Over the last 12 months, KLBAY's P/E has been as high as 10.13, as low as 3.60, with a median of 5.94, and its PEG ratio has been as high as 1.91, as low as 0.18, with a median of 1.12.

Klabin sports a P/B ratio of 2.77 as well; this compares to its industry's price-to-book ratio of 2.19. In the past 52 weeks, KLBAY's P/B has been as high as 2.98, as low as 2.02, with a median of 2.30.

Value investors will likely look at more than just these metrics, but the above data helps show that D S SMITH and Klabin are likely undervalued currently. And when considering the strength of its earnings outlook, DITHF and KLBAY sticks out as one of the market's strongest value stocks.


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