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Is DHL Group Sponsored ADR (DHLGY) a Great Value Stock Right Now?

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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.

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.

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.

DHL Group Sponsored ADR (DHLGY - Free Report) is a stock many investors are watching right now. DHLGY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.91 right now. For comparison, its industry sports an average P/E of 15.91. Over the last 12 months, DHLGY's Forward P/E has been as high as 13.53 and as low as 9.70, with a median of 11.74.

Another notable valuation metric for DHLGY is its P/B ratio of 2.13. The P/B ratio pits a stock's market value against 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 2.35. Over the past 12 months, DHLGY's P/B has been as high as 2.19 and as low as 1.56, with a median of 1.87.

Value investors also use the P/S ratio. The P/S ratio 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. DHLGY has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.81.

Finally, investors will want to recognize that DHLGY has a P/CF ratio of 6.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.72. Over the past 52 weeks, DHLGY's P/CF has been as high as 6.30 and as low as 4.51, with a median of 5.58.

These are only a few of the key metrics included in DHL Group Sponsored ADR'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, DHLGY looks like an impressive value stock at the moment.


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