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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is DNOW INC (DNOW - Free Report) . DNOW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.96 right now. For comparison, its industry sports an average P/E of 18.31. DNOW's Forward P/E has been as high as 15.41 and as low as 8.29, with a median of 11.02, all within the past year.
Another notable valuation metric for DNOW is its P/B ratio of 1.20. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.91. DNOW's P/B has been as high as 1.92 and as low as 1.12, with a median of 1.33, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DNOW has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.04.
Finally, investors should note that DNOW has a P/CF ratio of 7.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.62. Over the past year, DNOW's P/CF has been as high as 11.07 and as low as 6.58, with a median of 7.61.
Value investors will likely look at more than just these metrics, but the above data helps show that DNOW INC is likely undervalued currently. And when considering the strength of its earnings outlook, DNOW sticks out at as one of the market's strongest value stocks.
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Is DNOW INC (DNOW) Stock Undervalued Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is DNOW INC (DNOW - Free Report) . DNOW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.96 right now. For comparison, its industry sports an average P/E of 18.31. DNOW's Forward P/E has been as high as 15.41 and as low as 8.29, with a median of 11.02, all within the past year.
Another notable valuation metric for DNOW is its P/B ratio of 1.20. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.91. DNOW's P/B has been as high as 1.92 and as low as 1.12, with a median of 1.33, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DNOW has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.04.
Finally, investors should note that DNOW has a P/CF ratio of 7.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.62. Over the past year, DNOW's P/CF has been as high as 11.07 and as low as 6.58, with a median of 7.61.
Value investors will likely look at more than just these metrics, but the above data helps show that DNOW INC is likely undervalued currently. And when considering the strength of its earnings outlook, DNOW sticks out at as one of the market's strongest value stocks.