Back to top

Is DXP Enterprises (DXPE) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.39, while its industry has an average P/E of 19.25. Over the past year, DXPE's Forward P/E has been as high as 32.79 and as low as 12.48, with a median of 19.49.

DXPE is also sporting a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DXPE's industry currently sports an average PEG of 1.70. Within the past year, DXPE's PEG has been as high as 1 and as low as 0.95, with a median of 0.99.

We should also highlight that DXPE has a P/B ratio of 2.48. 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 solid versus its industry's average P/B of 5.41. Within the past 52 weeks, DXPE's P/B has been as high as 2.96 and as low as 1.59, with a median of 2.36.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DXPE has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.55.

Finally, investors should note that DXPE has a P/CF ratio of 12.60. 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. DXPE's current P/CF looks attractive when compared to its industry's average P/CF of 16.27. Within the past 12 months, DXPE's P/CF has been as high as 16.54 and as low as 8.07, with a median of 12.26.

Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


DXP Enterprises, Inc. (DXPE) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in