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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.59, while its industry has an average P/E of 11.27. Over the past year, DLX's Forward P/E has been as high as 7.19 and as low as 5.35, with a median of 6.02.
We also note that DLX holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DLX's PEG compares to its industry's average PEG of 1.03. DLX's PEG has been as high as 0.60 and as low as 0.45, with a median of 0.50, all within the past year.
Another notable valuation metric for DLX is its P/B ratio of 1.68. 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 2.16. Over the past year, DLX's P/B has been as high as 1.75 and as low as 1.30, with a median of 1.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. DLX has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.49.
Finally, investors should note that DLX has a P/CF ratio of 3.61. 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. DLX's current P/CF looks attractive when compared to its industry's average P/CF of 8.82. Over the past year, DLX's P/CF has been as high as 4.20 and as low as 2.89, with a median of 3.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deluxe is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLX feels like a great value stock at the moment.
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Is Deluxe (DLX) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.59, while its industry has an average P/E of 11.27. Over the past year, DLX's Forward P/E has been as high as 7.19 and as low as 5.35, with a median of 6.02.
We also note that DLX holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DLX's PEG compares to its industry's average PEG of 1.03. DLX's PEG has been as high as 0.60 and as low as 0.45, with a median of 0.50, all within the past year.
Another notable valuation metric for DLX is its P/B ratio of 1.68. 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 2.16. Over the past year, DLX's P/B has been as high as 1.75 and as low as 1.30, with a median of 1.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. DLX has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.49.
Finally, investors should note that DLX has a P/CF ratio of 3.61. 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. DLX's current P/CF looks attractive when compared to its industry's average P/CF of 8.82. Over the past year, DLX's P/CF has been as high as 4.20 and as low as 2.89, with a median of 3.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deluxe is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLX feels like a great value stock at the moment.