Back to top

Image: Bigstock

Is DecisionPoint Systems (DPSI) a Great Value Stock Right Now?

Read MoreHide Full Article

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

DecisionPoint Systems is a stock many investors are watching right now. DPSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 24.89. This compares to its industry's average Forward P/E of 25.20. Over the past 52 weeks, DPSI's Forward P/E has been as high as 51.55 and as low as 14.99, with a median of 22.41.

Finally, investors should note that DPSI has a P/CF ratio of 11.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DPSI's current P/CF looks attractive when compared to its industry's average P/CF of 16.70. Within the past 12 months, DPSI's P/CF has been as high as 28.11 and as low as 5.77, with a median of 12.12.

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

Published in