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Should Value Investors Buy DecisionPoint Systems (DPSI) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on 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 a P/E ratio of 10.28, which compares to its industry's average of 28.93. Over the last 12 months, DPSI's Forward P/E has been as high as 26.81 and as low as 10.28, with a median of 17.94.

Finally, our model also underscores that DPSI has a P/CF ratio of 6.66. 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 stock's P/CF looks attractive against its industry's average P/CF of 21.33. DPSI's P/CF has been as high as 18.58 and as low as 5.78, with a median of 8.34, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that DecisionPoint Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DPSI feels like a great value stock at the moment.

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