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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
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 0.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DLHC's current P/B looks attractive when compared to its industry's average P/B of 1.66. Over the past 12 months, DLHC's P/B has been as high as 1.62 and as low as 0.35, with a median of 1.10.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLHC has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC feels like a great value stock at the moment.
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Should Value Investors Buy DLH (DLHC) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
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 0.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DLHC's current P/B looks attractive when compared to its industry's average P/B of 1.66. Over the past 12 months, DLHC's P/B has been as high as 1.62 and as low as 0.35, with a median of 1.10.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLHC has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DLH is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLHC feels like a great value stock at the moment.