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Are Investors Undervaluing Deluxe (DLX) Right Now?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Deluxe (DLX - Free Report) is a stock many investors are watching right now. DLX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.65, which compares to its industry's average of 11. DLX's Forward P/E has been as high as 7.19 and as low as 5.35, with a median of 6.08, all within the past year.
DLX is also sporting a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DLX's industry currently sports an average PEG of 1.01. Over the past 52 weeks, DLX's PEG has been as high as 0.60 and as low as 0.45, with a median of 0.51.
We should also highlight that DLX has a P/B ratio of 1.70. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 2.12. DLX's P/B has been as high as 1.75 and as low as 1.34, with a median of 1.46, over the past year.
Finally, investors will want to recognize that DLX has a P/CF ratio of 3.66. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DLX's P/CF compares to its industry's average P/CF of 8.66. Over the past year, DLX's P/CF has been as high as 4.20 and as low as 2.89, with a median of 3.60.
These are only a few of the key metrics included in Deluxe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DLX looks like an impressive value stock at the moment.
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Are Investors Undervaluing Deluxe (DLX) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Deluxe (DLX - Free Report) is a stock many investors are watching right now. DLX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.65, which compares to its industry's average of 11. DLX's Forward P/E has been as high as 7.19 and as low as 5.35, with a median of 6.08, all within the past year.
DLX is also sporting a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DLX's industry currently sports an average PEG of 1.01. Over the past 52 weeks, DLX's PEG has been as high as 0.60 and as low as 0.45, with a median of 0.51.
We should also highlight that DLX has a P/B ratio of 1.70. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 2.12. DLX's P/B has been as high as 1.75 and as low as 1.34, with a median of 1.46, over the past year.
Finally, investors will want to recognize that DLX has a P/CF ratio of 3.66. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DLX's P/CF compares to its industry's average P/CF of 8.66. Over the past year, DLX's P/CF has been as high as 4.20 and as low as 2.89, with a median of 3.60.
These are only a few of the key metrics included in Deluxe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DLX looks like an impressive value stock at the moment.