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Is Ducommun (DCO) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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 Ducommun (DCO - Free Report) . DCO 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 12.03, while its industry has an average P/E of 20.74. Over the past year, DCO's Forward P/E has been as high as 25.07 and as low as 11.48, with a median of 17.40.

Finally, investors should note that DCO has a P/CF ratio of 6.05. 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. DCO's P/CF compares to its industry's average P/CF of 16.47. DCO's P/CF has been as high as 15.33 and as low as 5.77, with a median of 11, all within the past year.

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


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