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Are Investors Undervaluing Dun & Bradstreet (DNB) Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Dun & Bradstreet (DNB - Free Report) . DNB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

DNB is also sporting a PEG ratio of 1.87. 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. DNB's industry currently sports an average PEG of 2.48. Over the last 12 months, DNB's PEG has been as high as 2.87 and as low as 1.53, with a median of 2.00.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DNB has a P/S ratio of 1.69. This compares to its industry's average P/S of 3.96.

These are only a few of the key metrics included in Dun & Bradstreet'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, DNB looks like an impressive value stock at the moment.


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