We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Ducommun (DCO) Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ducommun (DCO - Free Report) . DCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.36, while its industry has an average P/E of 21.48. Over the past year, DCO's Forward P/E has been as high as 25.07 and as low as 6.41, with a median of 16.45.
Investors should also recognize that DCO has a P/B ratio of 1.32. 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 stock's P/B looks solid versus its industry's average P/B of 1.49. Over the past year, DCO's P/B has been as high as 2.25 and as low as 0.66, with a median of 1.36.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DCO has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that DCO has a P/CF ratio of 7.47. 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. DCO's current P/CF looks attractive when compared to its industry's average P/CF of 10.05. DCO's P/CF has been as high as 11.79 and as low as 3.24, with a median of 7.21, 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Ducommun (DCO) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ducommun (DCO - Free Report) . DCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.36, while its industry has an average P/E of 21.48. Over the past year, DCO's Forward P/E has been as high as 25.07 and as low as 6.41, with a median of 16.45.
Investors should also recognize that DCO has a P/B ratio of 1.32. 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 stock's P/B looks solid versus its industry's average P/B of 1.49. Over the past year, DCO's P/B has been as high as 2.25 and as low as 0.66, with a median of 1.36.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DCO has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that DCO has a P/CF ratio of 7.47. 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. DCO's current P/CF looks attractive when compared to its industry's average P/CF of 10.05. DCO's P/CF has been as high as 11.79 and as low as 3.24, with a median of 7.21, 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.