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Should Value Investors Buy Deutsche Telekom (DTEGY) Stock?
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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 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 to watch right now is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.19, which compares to its industry's average of 17.63. DTEGY's Forward P/E has been as high as 17.39 and as low as 13.19, with a median of 14.75, all within the past year.
Investors should also note that DTEGY holds a PEG ratio of 1.29. 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. DTEGY's PEG compares to its industry's average PEG of 2.15. 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. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. DTEGY's P/B has been as high as 1.88 and as low as 1.39, with a median of 1.69, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 1.15. This compares to its industry's average P/S of 1.24.
Finally, investors will want to recognize that DTEGY has a P/CF ratio of 4.13. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DTEGY's current P/CF looks attractive when compared to its industry's average P/CF of 6.27. DTEGY's P/CF has been as high as 4.93 and as low as 3.86, with a median of 4.53, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom is likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Deutsche Telekom (DTEGY) Stock?
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 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 to watch right now is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.19, which compares to its industry's average of 17.63. DTEGY's Forward P/E has been as high as 17.39 and as low as 13.19, with a median of 14.75, all within the past year.
Investors should also note that DTEGY holds a PEG ratio of 1.29. 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. DTEGY's PEG compares to its industry's average PEG of 2.15. 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. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. DTEGY's P/B has been as high as 1.88 and as low as 1.39, with a median of 1.69, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 1.15. This compares to its industry's average P/S of 1.24.
Finally, investors will want to recognize that DTEGY has a P/CF ratio of 4.13. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DTEGY's current P/CF looks attractive when compared to its industry's average P/CF of 6.27. DTEGY's P/CF has been as high as 4.93 and as low as 3.86, with a median of 4.53, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom is likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY sticks out as one of the market's strongest value stocks.