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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8 right now. For comparison, its industry sports an average P/E of 10.34. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 6.76, with a median of 8.40.
Investors should also recognize that DLX has a P/B ratio of 2.14. 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 2.72. Over the past year, DLX's P/B has been as high as 3.24 and as low as 1.79, with a median of 2.49.
Finally, we should also recognize that DLX has a P/CF ratio of 6.83. 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. DLX's current P/CF looks attractive when compared to its industry's average P/CF of 10.73. Over the past 52 weeks, DLX's P/CF has been as high as 8.97 and as low as 5.28, with a median of 7.17.
These are only a few of the key metrics included in Deluxe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DLX looks like an impressive value stock at the moment.
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8 right now. For comparison, its industry sports an average P/E of 10.34. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 6.76, with a median of 8.40.
Investors should also recognize that DLX has a P/B ratio of 2.14. 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 2.72. Over the past year, DLX's P/B has been as high as 3.24 and as low as 1.79, with a median of 2.49.
Finally, we should also recognize that DLX has a P/CF ratio of 6.83. 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. DLX's current P/CF looks attractive when compared to its industry's average P/CF of 10.73. Over the past 52 weeks, DLX's P/CF has been as high as 8.97 and as low as 5.28, with a median of 7.17.
These are only a few of the key metrics included in Deluxe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DLX looks like an impressive value stock at the moment.