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Should Value Investors Buy DXP Enterprises (DXPE) Stock?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
DXP Enterprises (DXPE - Free Report) is a stock many investors are watching right now. DXPE 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 13.67 right now. For comparison, its industry sports an average P/E of 22.10. Over the past year, DXPE's Forward P/E has been as high as 17.28 and as low as 7.02, with a median of 9.46.
Investors should also recognize that DXPE has a P/B ratio of 2.16. 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 5.43. Over the past 12 months, DXPE's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.60.
Finally, our model also underscores that DXPE has a P/CF ratio of 8.96. 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 22.60. DXPE's P/CF has been as high as 9.92 and as low as 5.18, with a median of 7.12, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy DXP Enterprises (DXPE) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
DXP Enterprises (DXPE - Free Report) is a stock many investors are watching right now. DXPE 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 13.67 right now. For comparison, its industry sports an average P/E of 22.10. Over the past year, DXPE's Forward P/E has been as high as 17.28 and as low as 7.02, with a median of 9.46.
Investors should also recognize that DXPE has a P/B ratio of 2.16. 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 5.43. Over the past 12 months, DXPE's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.60.
Finally, our model also underscores that DXPE has a P/CF ratio of 8.96. 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 22.60. DXPE's P/CF has been as high as 9.92 and as low as 5.18, with a median of 7.12, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.