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Is DXP Enterprises (DXPE) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.74, while its industry has an average P/E of 22.62. Over the past 52 weeks, DXPE's Forward P/E has been as high as 17.28 and as low as 7.02, with a median of 13.27.

We should also highlight that DXPE has a P/B ratio of 2.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.67. Within the past 52 weeks, DXPE's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.93.

Finally, investors will want to recognize that DXPE has a P/CF ratio of 9.05. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DXPE's current P/CF looks attractive when compared to its industry's average P/CF of 22.26. DXPE's P/CF has been as high as 9.92 and as low as 5.18, with a median of 8.03, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.


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