While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 stock to keep an eye on is China Distance . DL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.80, which compares to its industry's average of 21.46. DL's Forward P/E has been as high as 12.36 and as low as 6.51, with a median of 8.39, all within the past year.
DL is also sporting a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DL's PEG compares to its industry's average PEG of 1.03. Over the last 12 months, DL's PEG has been as high as 0.82 and as low as 0.43, with a median of 0.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that China Distance is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DL feels like a great value stock at the moment.
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Is China Distance (DL) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 stock to keep an eye on is China Distance . DL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.80, which compares to its industry's average of 21.46. DL's Forward P/E has been as high as 12.36 and as low as 6.51, with a median of 8.39, all within the past year.
DL is also sporting a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DL's PEG compares to its industry's average PEG of 1.03. Over the last 12 months, DL's PEG has been as high as 0.82 and as low as 0.43, with a median of 0.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that China Distance is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DL feels like a great value stock at the moment.