Back to top

Image: Bigstock

Are Investors Undervaluing DCC (DCCPF) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is DCC (DCCPF - Free Report) . DCCPF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.69 right now. For comparison, its industry sports an average P/E of 18.25. Over the past 52 weeks, DCCPF's Forward P/E has been as high as 13.70 and as low as 8.58, with a median of 10.88.

Another notable valuation metric for DCCPF is its P/B ratio of 1.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DCCPF's current P/B looks attractive when compared to its industry's average P/B of 3.89. Over the past 12 months, DCCPF's P/B has been as high as 1.98 and as low as 1.20, with a median of 1.53.

Another great Business - Services stock you could consider is Secom Co. (SOMLY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Secom Co. also has a P/B ratio of 1.43 compared to its industry's price-to-book ratio of 3.89. Over the past year, its P/B ratio has been as high as 1.65, as low as 1.23, with a median of 1.46.

These are just a handful of the figures considered in DCC and Secom Co.'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 DCCPF and SOMLY is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Secom Co. (SOMLY) - free report >>

DCC (DCCPF) - free report >>

Published in