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Are Investors Undervaluing DHI Group (DHX) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

DHI Group (DHX - Free Report) is a stock many investors are watching right now. DHX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

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. DHX has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.34.

Finally, investors will want to recognize that DHX has a P/CF ratio of 6.19. 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 23.44. Within the past 12 months, DHX's P/CF has been as high as 9.34 and as low as 4.26, with a median of 7.28.

Value investors will likely look at more than just these metrics, but the above data helps show that DHI Group is likely undervalued currently. And when considering the strength of its earnings outlook, DHX sticks out at as one of the market's strongest value stocks.


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