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Should Value Investors Buy DLH (DLHC) 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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

DLH (DLHC - Free Report) is a stock many investors are watching right now. DLHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that DLHC has a P/B ratio of 2.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.22. Over the past year, DLHC's P/B has been as high as 2.32 and as low as 1.23, with a median of 1.53.

Finally, investors should note that DLHC has a P/CF ratio of 9.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.33. DLHC's P/CF has been as high as 12.03 and as low as 5.85, with a median of 7.39, all within the past year.

These are only a few of the key metrics included in DLH'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, DLHC looks like an impressive value stock at the moment.


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