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Should Value Investors Buy DHL Group Sponsored ADR (DHLGY) 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.

DHL Group Sponsored ADR (DHLGY - Free Report) is a stock many investors are watching right now. DHLGY is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.14. This compares to its industry's average Forward P/E of 14.88. DHLGY's Forward P/E has been as high as 13.53 and as low as 9.70, with a median of 11.91, all within the past year.

Another notable valuation metric for DHLGY is its P/B ratio of 2.22. 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 solid versus its industry's average P/B of 3.61. DHLGY's P/B has been as high as 2.45 and as low as 1.56, with a median of 2.00, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DHLGY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.91.

Finally, we should also recognize that DHLGY has a P/CF ratio of 5.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DHLGY's P/CF compares to its industry's average P/CF of 14.99. 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.

These figures are just a handful of the metrics value investors tend to look at, but they help show that DHL Group Sponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DHLGY feels like a great value stock at the moment.

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