We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Screen Holdings (DINRF) Stock?
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.
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.
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 value investors might notice is Screen Holdings (DINRF - Free Report) . DINRF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DINRF has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.81.
Finally, we should also recognize that DINRF has a P/CF ratio of 7.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.08. Over the past year, DINRF's P/CF has been as high as 12.19 and as low as 5.27, with a median of 7.33.
Investors could also keep in mind STMicroelectronics (STM - Free Report) , an Semiconductor - General stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of STMicroelectronics currently holds a Forward P/E ratio of 13.20, and its PEG ratio is 2.64. In comparison, its industry sports average P/E and PEG ratios of 32.28 and 3.68.
STM's price-to-earnings ratio has been as high as 16.36 and as low as 7.91, with a median of 10.18, while its PEG ratio has been as high as 3.27 and as low as 1.58, with a median of 2.04, all within the past year.
Additionally, STMicroelectronics has a P/B ratio of 3.59 while its industry's price-to-book ratio sits at 4.92. For STM, this valuation metric has been as high as 4.64, as low as 2.47, with a median of 3.20 over the past year.
These are only a few of the key metrics included in Screen Holdings and STMicroelectronics strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DINRF and STM look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Screen Holdings (DINRF) Stock?
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.
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.
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 value investors might notice is Screen Holdings (DINRF - Free Report) . DINRF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DINRF has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.81.
Finally, we should also recognize that DINRF has a P/CF ratio of 7.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.08. Over the past year, DINRF's P/CF has been as high as 12.19 and as low as 5.27, with a median of 7.33.
Investors could also keep in mind STMicroelectronics (STM - Free Report) , an Semiconductor - General stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of STMicroelectronics currently holds a Forward P/E ratio of 13.20, and its PEG ratio is 2.64. In comparison, its industry sports average P/E and PEG ratios of 32.28 and 3.68.
STM's price-to-earnings ratio has been as high as 16.36 and as low as 7.91, with a median of 10.18, while its PEG ratio has been as high as 3.27 and as low as 1.58, with a median of 2.04, all within the past year.
Additionally, STMicroelectronics has a P/B ratio of 3.59 while its industry's price-to-book ratio sits at 4.92. For STM, this valuation metric has been as high as 4.64, as low as 2.47, with a median of 3.20 over the past year.
These are only a few of the key metrics included in Screen Holdings and STMicroelectronics strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DINRF and STM look like an impressive value stock at the moment.