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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is DCP Midstream Partners . DCP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.89, which compares to its industry's average of 14.95. Over the past 52 weeks, DCP's Forward P/E has been as high as 30.57 and as low as 6.94, with a median of 8.58.
We should also highlight that DCP has a P/B ratio of 1.43. 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. DCP's current P/B looks attractive when compared to its industry's average P/B of 1.77. DCP's P/B has been as high as 1.61 and as low as 1.02, with a median of 1.35, over the past year.
Finally, investors will want to recognize that DCP has a P/CF ratio of 5.49. 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. DCP's P/CF compares to its industry's average P/CF of 9.78. Over the past 52 weeks, DCP's P/CF has been as high as 11.65 and as low as 4.93, with a median of 8.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DCP Midstream Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DCP feels like a great value stock at the moment.
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Are Investors Undervaluing DCP Midstream Partners (DCP) 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is DCP Midstream Partners . DCP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.89, which compares to its industry's average of 14.95. Over the past 52 weeks, DCP's Forward P/E has been as high as 30.57 and as low as 6.94, with a median of 8.58.
We should also highlight that DCP has a P/B ratio of 1.43. 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. DCP's current P/B looks attractive when compared to its industry's average P/B of 1.77. DCP's P/B has been as high as 1.61 and as low as 1.02, with a median of 1.35, over the past year.
Finally, investors will want to recognize that DCP has a P/CF ratio of 5.49. 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. DCP's P/CF compares to its industry's average P/CF of 9.78. Over the past 52 weeks, DCP's P/CF has been as high as 11.65 and as low as 4.93, with a median of 8.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DCP Midstream Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DCP feels like a great value stock at the moment.