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Are These Business Services Stocks Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 company to watch right now is DLH (DLHC - Free Report) . DLHC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.39, which compares to its industry's average of 12.94. Over the last 12 months, DLHC's Forward P/E has been as high as 16.27 and as low as 11.11, with a median of 13.74.
We should also highlight that DLHC has a P/B ratio of 2.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.40. DLHC's P/B has been as high as 3.34 and as low as 2.08, with a median of 2.35, over the past year.
Finally, investors will want to recognize that DLHC has a P/CF ratio of 10.74. 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. DLHC's current P/CF looks attractive when compared to its industry's average P/CF of 20.49. DLHC's P/CF has been as high as 13.16 and as low as 8.11, with a median of 9.27, all within the past year.
Investors could also keep in mind SThree (STREF - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, SThree has a P/B ratio of 2.37 while its industry's price-to-book ratio sits at 3.40. For STREF, this valuation metric has been as high as 2.69, as low as 2.37, with a median of 2.37 over the past year.
These are just a handful of the figures considered in DLH and SThree's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DLHC and STREF is an impressive value stock right now.
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Are These Business Services Stocks Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 company to watch right now is DLH (DLHC - Free Report) . DLHC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.39, which compares to its industry's average of 12.94. Over the last 12 months, DLHC's Forward P/E has been as high as 16.27 and as low as 11.11, with a median of 13.74.
We should also highlight that DLHC has a P/B ratio of 2.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.40. DLHC's P/B has been as high as 3.34 and as low as 2.08, with a median of 2.35, over the past year.
Finally, investors will want to recognize that DLHC has a P/CF ratio of 10.74. 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. DLHC's current P/CF looks attractive when compared to its industry's average P/CF of 20.49. DLHC's P/CF has been as high as 13.16 and as low as 8.11, with a median of 9.27, all within the past year.
Investors could also keep in mind SThree (STREF - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, SThree has a P/B ratio of 2.37 while its industry's price-to-book ratio sits at 3.40. For STREF, this valuation metric has been as high as 2.69, as low as 2.37, with a median of 2.37 over the past year.
These are just a handful of the figures considered in DLH and SThree's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DLHC and STREF is an impressive value stock right now.