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Are Investors Undervaluing DHL Group Sponsored ADR (DHLGY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is DHL Group Sponsored ADR (DHLGY - Free Report) . DHLGY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.14, while its industry has an average P/E of 14.98. 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.

Investors should also recognize that DHLGY has a P/B ratio of 2.22. 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. This stock's P/B looks attractive against its industry's average P/B of 3.67. 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 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. DHLGY has a P/S ratio of 0.7. 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 figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DHLGY's P/CF compares to its industry's average P/CF of 13.05. 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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