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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is DLH (DLHC - Free Report) . DLHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for DLHC is its P/B ratio of 1.95. 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 solid versus its industry's average P/B of 2.30. 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 1.55.
Finally, our model also underscores that DLHC has a P/CF ratio of 9.65. 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. DLHC's P/CF compares to its industry's average P/CF of 13.43. DLHC's P/CF has been as high as 12.03 and as low as 5.85, with a median of 7.54, all within the past year.
Investors could also keep in mind KornFerry International (KFY - Free Report) , an Staffing Firms stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, KornFerry International holds a P/B ratio of 2.01 and its industry's price-to-book ratio is 2.30. KFY's P/B has been as high as 2.04, as low as 1.38, with a median of 1.62 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH and KornFerry International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC and KFY feels like a great value stock at the moment.
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Are Investors Undervaluing DLH (DLHC) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is DLH (DLHC - Free Report) . DLHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for DLHC is its P/B ratio of 1.95. 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 solid versus its industry's average P/B of 2.30. 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 1.55.
Finally, our model also underscores that DLHC has a P/CF ratio of 9.65. 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. DLHC's P/CF compares to its industry's average P/CF of 13.43. DLHC's P/CF has been as high as 12.03 and as low as 5.85, with a median of 7.54, all within the past year.
Investors could also keep in mind KornFerry International (KFY - Free Report) , an Staffing Firms stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, KornFerry International holds a P/B ratio of 2.01 and its industry's price-to-book ratio is 2.30. KFY's P/B has been as high as 2.04, as low as 1.38, with a median of 1.62 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH and KornFerry International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC and KFY feels like a great value stock at the moment.