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Is DHL Group Sponsored ADR (DHLGY) Stock Undervalued 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.
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.
One company value investors might notice is DHL Group Sponsored ADR (DHLGY - Free Report) . DHLGY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.14, which compares to its industry's average of 18.03. Over the past 52 weeks, DHLGY's Forward P/E has been as high as 13.53 and as low as 9.70, with a median of 11.91.
DHLGY is also sporting a PEG ratio of 1.46. 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. DHLGY's industry has an average PEG of 1.63 right now. Over the last 12 months, DHLGY's PEG has been as high as 2.57 and as low as 1.03, with a median of 1.55.
Another notable valuation metric for DHLGY is its P/B ratio of 2.22. 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. DHLGY's current P/B looks attractive when compared to its industry's average P/B of 2.84. Over the past 12 months, DHLGY's P/B has been as high as 2.45 and as low as 1.56, 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. DHLGY has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that DHLGY has a P/CF ratio of 5.51. 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 14.74. Over the past 52 weeks, DHLGY's P/CF has been as high as 6.28 and as low as 4.51, with a median of 5.61.
Value investors will likely look at more than just these metrics, but the above data helps show that DHL Group Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, DHLGY sticks out as one of the market's strongest value stocks.
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Is DHL Group Sponsored ADR (DHLGY) 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.
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.
One company value investors might notice is DHL Group Sponsored ADR (DHLGY - Free Report) . DHLGY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.14, which compares to its industry's average of 18.03. Over the past 52 weeks, DHLGY's Forward P/E has been as high as 13.53 and as low as 9.70, with a median of 11.91.
DHLGY is also sporting a PEG ratio of 1.46. 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. DHLGY's industry has an average PEG of 1.63 right now. Over the last 12 months, DHLGY's PEG has been as high as 2.57 and as low as 1.03, with a median of 1.55.
Another notable valuation metric for DHLGY is its P/B ratio of 2.22. 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. DHLGY's current P/B looks attractive when compared to its industry's average P/B of 2.84. Over the past 12 months, DHLGY's P/B has been as high as 2.45 and as low as 1.56, 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. DHLGY has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that DHLGY has a P/CF ratio of 5.51. 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 14.74. Over the past 52 weeks, DHLGY's P/CF has been as high as 6.28 and as low as 4.51, with a median of 5.61.
Value investors will likely look at more than just these metrics, but the above data helps show that DHL Group Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, DHLGY sticks out as one of the market's strongest value stocks.