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Are Investors Undervaluing DHI Group (DHX) Right Now?
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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.
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.
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.
DHI Group (DHX - Free Report) is a stock many investors are watching right now. DHX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.24. This compares to its industry's average Forward P/E of 26.10. Over the past year, DHX's Forward P/E has been as high as 15.31 and as low as 5.67, with a median of 10.09.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DHX has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DHI Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DHX feels like a great value stock at the moment.
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Are Investors Undervaluing DHI Group (DHX) Right Now?
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.
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.
DHI Group (DHX - Free Report) is a stock many investors are watching right now. DHX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.24. This compares to its industry's average Forward P/E of 26.10. Over the past year, DHX's Forward P/E has been as high as 15.31 and as low as 5.67, with a median of 10.09.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DHX has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DHI Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DHX feels like a great value stock at the moment.