Back to top

Image: Bigstock

Is Deluxe (DLX) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.72, while its industry has an average P/E of 10.64. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 5.69, with a median of 7.95.

Investors should also recognize that DLX has a P/B ratio of 2.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.89. Within the past 52 weeks, DLX's P/B has been as high as 2.69 and as low as 1.79, with a median of 2.24.

Finally, investors should note that DLX has a P/CF ratio of 7.61. 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. DLX's P/CF compares to its industry's average P/CF of 11.28. Within the past 12 months, DLX's P/CF has been as high as 7.92 and as low as 5.28, with a median of 6.93.

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


See More Zacks Research for These Tickers


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


Deluxe Corporation (DLX) - free report >>

Published in