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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is DHI Group (DHX - Free Report) . DHX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.69 right now. For comparison, its industry sports an average P/E of 24.08. DHX's Forward P/E has been as high as 46.67 and as low as 12.57, with a median of 26.42, all within the past year.
We also note that DHX holds a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DHX's PEG compares to its industry's average PEG of 1.38. DHX's PEG has been as high as 1.87 and as low as 0.56, with a median of 1.32, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DHX has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.32.
Finally, we should also recognize that DHX has a P/CF ratio of 5.56. 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. DHX's P/CF compares to its industry's average P/CF of 13.53. Over the past 52 weeks, DHX's P/CF has been as high as 9.34 and as low as 4.26, with a median of 6.70.
These are just a handful of the figures considered in DHI Group'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 DHX is an impressive value stock right now.
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Should Value Investors Buy DHI Group (DHX) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is DHI Group (DHX - Free Report) . DHX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.69 right now. For comparison, its industry sports an average P/E of 24.08. DHX's Forward P/E has been as high as 46.67 and as low as 12.57, with a median of 26.42, all within the past year.
We also note that DHX holds a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DHX's PEG compares to its industry's average PEG of 1.38. DHX's PEG has been as high as 1.87 and as low as 0.56, with a median of 1.32, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DHX has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.32.
Finally, we should also recognize that DHX has a P/CF ratio of 5.56. 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. DHX's P/CF compares to its industry's average P/CF of 13.53. Over the past 52 weeks, DHX's P/CF has been as high as 9.34 and as low as 4.26, with a median of 6.70.
These are just a handful of the figures considered in DHI Group'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 DHX is an impressive value stock right now.