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Is Deluxe (DLX) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Deluxe (DLX - Free Report) is a stock many investors are watching right now. DLX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.03, while its industry has an average P/E of 12.93. DLX's Forward P/E has been as high as 6.54 and as low as 4.42, with a median of 5.49, all within the past year.

We also note that DLX holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DLX's PEG compares to its industry's average PEG of 1.19. DLX's PEG has been as high as 0.55 and as low as 0.37, with a median of 0.46, all within the past year.

We should also highlight that DLX has a P/B ratio of 1.46. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 2.35. Within the past 52 weeks, DLX's P/B has been as high as 1.53 and as low as 1.01, with a median of 1.32.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLX has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.51.

Finally, our model also underscores that DLX has a P/CF ratio of 3.77. 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 11.72. Within the past 12 months, DLX's P/CF has been as high as 3.82 and as low as 2.26, with a median of 3.10.

If you're looking for another solid Business - Office Products value stock, take a look at Steelcase (SCS - Free Report) . SCS is a # 2 (Buy) stock with a Value score of A.

Steelcase is currently trading with a Forward P/E ratio of 16.67 while its PEG ratio sits at 1.67. Both of the company's metrics compare favorably to its industry's average P/E of 12.93 and average PEG ratio of 1.19.

SCS's Forward P/E has been as high as 16.67 and as low as 9.54, with a median of 12.78. During the same time period, its PEG ratio has been as high as 1.67, as low as 0.95, with a median of 1.28.

Furthermore, Steelcase holds a P/B ratio of 1.88 and its industry's price-to-book ratio is 2.35. SCS's P/B has been as high as 1.88, as low as 0.87, with a median of 1.09 over the past 12 months.

These are just a handful of the figures considered in Deluxe and Steelcase'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 DLX and SCS is an impressive value stock right now.


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