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Are Investors Undervaluing DecisionPoint Systems (DPSI) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 DecisionPoint Systems . DPSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 20.14 right now. For comparison, its industry sports an average P/E of 25.44. Over the past year, DPSI's Forward P/E has been as high as 51.55 and as low as 14.99, with a median of 23.89.

We should also highlight that DPSI has a P/B ratio of 2.83. The P/B ratio pits a stock's market value against 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 7.83. Over the past year, DPSI's P/B has been as high as 5.56 and as low as 1.71, with a median of 2.70.

Finally, investors should note that DPSI has a P/CF ratio of 13.37. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.38. Over the past year, DPSI's P/CF has been as high as 28.11 and as low as 6.95, with a median of 13.65.

Value investors will likely look at more than just these metrics, but the above data helps show that DecisionPoint Systems is likely undervalued currently. And when considering the strength of its earnings outlook, DPSI sticks out at as one of the market's strongest value stocks.

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