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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Delek Logistics Partners, L.P. (DKL - Free Report) . DKL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10, which compares to its industry's average of 14.01. Over the last 12 months, DKL's Forward P/E has been as high as 11.19 and as low as 8.92, with a median of 9.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DKL has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that DKL has a P/CF ratio of 6.24. 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. DKL's current P/CF looks attractive when compared to its industry's average P/CF of 9.62. DKL's P/CF has been as high as 7.83 and as low as 5.56, with a median of 6.58, 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 Delek Logistics Partners, L.P. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DKL feels like a great value stock at the moment.