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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Daktronics (DAKT - Free Report) . DAKT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 12.02, which compares to its industry's average of 23.74. Over the past year, DAKT's Forward P/E has been as high as 15.80 and as low as 8.60, with a median of 12.58.
Another notable valuation metric for DAKT is its P/B ratio of 2.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.19. Over the past 12 months, DAKT's P/B has been as high as 2.70 and as low as 1.38, with a median of 1.83.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAKT has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.93.
Finally, we should also recognize that DAKT has a P/CF ratio of 11.88. 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. DAKT's current P/CF looks attractive when compared to its industry's average P/CF of 21.69. Over the past year, DAKT's P/CF has been as high as 14.14 and as low as 5.39, with a median of 7.65.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Daktronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAKT feels like a great value stock at the moment.
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Is Daktronics (DAKT) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Daktronics (DAKT - Free Report) . DAKT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 12.02, which compares to its industry's average of 23.74. Over the past year, DAKT's Forward P/E has been as high as 15.80 and as low as 8.60, with a median of 12.58.
Another notable valuation metric for DAKT is its P/B ratio of 2.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.19. Over the past 12 months, DAKT's P/B has been as high as 2.70 and as low as 1.38, with a median of 1.83.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAKT has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.93.
Finally, we should also recognize that DAKT has a P/CF ratio of 11.88. 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. DAKT's current P/CF looks attractive when compared to its industry's average P/CF of 21.69. Over the past year, DAKT's P/CF has been as high as 14.14 and as low as 5.39, with a median of 7.65.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Daktronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAKT feels like a great value stock at the moment.