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Are Investors Undervaluing DHL Group Sponsored ADR (DHLGY) 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, 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.

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 sporting a Zacks Rank #2 (Buy), as well as 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 19.76. Over the past year, DHLGY's Forward P/E has been as high as 13.53 and as low as 9.70, with a median of 11.91.

We also note that DHLGY holds a PEG ratio of 1.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHLGY's industry has an average PEG of 1.76 right now. Over the past 52 weeks, 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 pits a stock's market value against 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 2.96. Within the past 52 weeks, 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.73. This compares to its industry's average P/S of 0.76.

Finally, we should also recognize that DHLGY has a P/CF ratio of 5.51. 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. DHLGY's P/CF compares to its industry's average P/CF of 14.53. DHLGY's P/CF has been as high as 6.28 and as low as 4.51, with a median of 5.61, all within the past year.

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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