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Is DecisionPoint Systems (DPSI) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is DecisionPoint Systems . DPSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 23.89, while its industry has an average P/E of 25.03. Over the last 12 months, DPSI's Forward P/E has been as high as 51.55 and as low as 14.99, with a median of 22.89.

Investors should also recognize that DPSI has a P/B ratio of 3.32. 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. DPSI's current P/B looks attractive when compared to its industry's average P/B of 8.45. Within the past 52 weeks, DPSI's P/B has been as high as 5.56 and as low as 1.71, with a median of 2.55.

Finally, investors should note that DPSI has a P/CF ratio of 15.71. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.54. DPSI's P/CF has been as high as 28.11 and as low as 6.77, with a median of 13.20, all within the past year.

These are only a few of the key metrics included in DecisionPoint Systems 's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DPSI looks like an impressive value stock at the moment.

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