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Should Value Investors Buy Deutsche Telekom (DTEGY) Stock?
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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 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 to watch right now is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.19. This compares to its industry's average Forward P/E of 20.60. Over the past 52 weeks, DTEGY's Forward P/E has been as high as 17.39 and as low as 13.19, with a median of 14.75.
DTEGY is also sporting a PEG ratio of 1.29. 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. DTEGY's PEG compares to its industry's average PEG of 1.91. Over the past 52 weeks, DTEGY's PEG has been as high as 1.48 and as low as 0.95, with a median of 1.35.
Investors should also recognize that DTEGY has a P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DTEGY's current P/B looks attractive when compared to its industry's average P/B of 2.19. Over the past year, DTEGY's P/B has been as high as 1.88 and as low as 1.39, with a median of 1.69.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DTEGY has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.33.
Finally, investors should note that DTEGY has a P/CF ratio of 4.13. 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. DTEGY's P/CF compares to its industry's average P/CF of 6.22. Over the past 52 weeks, DTEGY's P/CF has been as high as 4.93 and as low as 3.86, with a median of 4.53.
VEON (VEON - Free Report) may be another strong Diversified Communication Services stock to add to your shortlist. VEON is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
VEON also has a P/B ratio of 2.72 compared to its industry's price-to-book ratio of 2.19. Over the past year, its P/B ratio has been as high as 3.10, as low as 1.71, with a median of 2.46.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom and VEON are likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY and VEON sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Deutsche Telekom (DTEGY) Stock?
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 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 to watch right now is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.19. This compares to its industry's average Forward P/E of 20.60. Over the past 52 weeks, DTEGY's Forward P/E has been as high as 17.39 and as low as 13.19, with a median of 14.75.
DTEGY is also sporting a PEG ratio of 1.29. 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. DTEGY's PEG compares to its industry's average PEG of 1.91. Over the past 52 weeks, DTEGY's PEG has been as high as 1.48 and as low as 0.95, with a median of 1.35.
Investors should also recognize that DTEGY has a P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DTEGY's current P/B looks attractive when compared to its industry's average P/B of 2.19. Over the past year, DTEGY's P/B has been as high as 1.88 and as low as 1.39, with a median of 1.69.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DTEGY has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.33.
Finally, investors should note that DTEGY has a P/CF ratio of 4.13. 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. DTEGY's P/CF compares to its industry's average P/CF of 6.22. Over the past 52 weeks, DTEGY's P/CF has been as high as 4.93 and as low as 3.86, with a median of 4.53.
VEON (VEON - Free Report) may be another strong Diversified Communication Services stock to add to your shortlist. VEON is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
VEON also has a P/B ratio of 2.72 compared to its industry's price-to-book ratio of 2.19. Over the past year, its P/B ratio has been as high as 3.10, as low as 1.71, with a median of 2.46.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom and VEON are likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY and VEON sticks out as one of the market's strongest value stocks.