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Should Value Investors Buy DCC PLC SHS (DCCPF) Stock?

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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.

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 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.

DCC PLC SHS (DCCPF - Free Report) is a stock many investors are watching right now. DCCPF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 16.31 right now. For comparison, its industry sports an average P/E of 16.86. Over the past year, DCCPF's Forward P/E has been as high as 19.50 and as low as 11.53, with a median of 18.23.

DCCPF is also sporting a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DCCPF's PEG compares to its industry's average PEG of 1.62. Within the past year, DCCPF's PEG has been as high as 1.50 and as low as 1.12, with a median of 1.42.

These figures are just a handful of the metrics value investors tend to look at, but they help show that DCC PLC SHS is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DCCPF feels like a great value stock at the moment.


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