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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.32. This compares to its industry's average Forward P/E of 8.33. Over the past year, DLX's Forward P/E has been as high as 6.95 and as low as 3.90, with a median of 5.28.
We also note that DLX holds a PEG ratio of 0.44. 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. DLX's PEG compares to its industry's average PEG of 0.49. Over the past 52 weeks, DLX's PEG has been as high as 0.58 and as low as 0.32, with a median of 0.44.
Investors should also recognize that DLX has a P/B ratio of 1.36. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 1.45. Over the past 12 months, DLX's P/B has been as high as 1.75 and as low as 0.98, with a median of 1.34.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLX has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.78.
Finally, investors should note that DLX has a P/CF ratio of 3.37. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.13. Within the past 12 months, DLX's P/CF has been as high as 3.89 and as low as 2.31, with a median of 2.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Deluxe is likely undervalued currently. And when considering the strength of its earnings outlook, DLX sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Deluxe (DLX) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.32. This compares to its industry's average Forward P/E of 8.33. Over the past year, DLX's Forward P/E has been as high as 6.95 and as low as 3.90, with a median of 5.28.
We also note that DLX holds a PEG ratio of 0.44. 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. DLX's PEG compares to its industry's average PEG of 0.49. Over the past 52 weeks, DLX's PEG has been as high as 0.58 and as low as 0.32, with a median of 0.44.
Investors should also recognize that DLX has a P/B ratio of 1.36. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 1.45. Over the past 12 months, DLX's P/B has been as high as 1.75 and as low as 0.98, with a median of 1.34.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLX has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.78.
Finally, investors should note that DLX has a P/CF ratio of 3.37. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.13. Within the past 12 months, DLX's P/CF has been as high as 3.89 and as low as 2.31, with a median of 2.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Deluxe is likely undervalued currently. And when considering the strength of its earnings outlook, DLX sticks out as one of the market's strongest value stocks.