Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
China Distance is a stock many investors are watching right now. DL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.30, while its industry has an average P/E of 26.41. Over the last 12 months, DL's Forward P/E has been as high as 12.36 and as low as 6.51, with a median of 8.66.
Investors should also note that DL holds a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DL's industry currently sports an average PEG of 1.27. 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 0.58.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DL has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.31.
Value investors will likely look at more than just these metrics, but the above data helps show that China Distance is likely undervalued currently. And when considering the strength of its earnings outlook, DL sticks out at as one of the market's strongest value stocks.
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Is China Distance (DL) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
China Distance is a stock many investors are watching right now. DL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.30, while its industry has an average P/E of 26.41. Over the last 12 months, DL's Forward P/E has been as high as 12.36 and as low as 6.51, with a median of 8.66.
Investors should also note that DL holds a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DL's industry currently sports an average PEG of 1.27. 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 0.58.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DL has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.31.
Value investors will likely look at more than just these metrics, but the above data helps show that China Distance is likely undervalued currently. And when considering the strength of its earnings outlook, DL sticks out at as one of the market's strongest value stocks.