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Is DXP Enterprises (DXPE) a Great Value Stock Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is DXP Enterprises (DXPE - Free Report) . DXPE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.88, which compares to its industry's average of 18.44. DXPE's Forward P/E has been as high as 27.32 and as low as 11.35, with a median of 15.70, all within the past year.
DXPE is also sporting a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DXPE's PEG compares to its industry's average PEG of 1.66. Within the past year, DXPE's PEG has been as high as 1 and as low as 0.65, with a median of 0.77.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DXPE has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.21.
Finally, investors will want to recognize that DXPE has a P/CF ratio of 8.50. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.10. Over the past year, DXPE's P/CF has been as high as 15.90 and as low as 8.07, with a median of 10.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DXP Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DXPE feels like a great value stock at the moment.
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Is DXP Enterprises (DXPE) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is DXP Enterprises (DXPE - Free Report) . DXPE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.88, which compares to its industry's average of 18.44. DXPE's Forward P/E has been as high as 27.32 and as low as 11.35, with a median of 15.70, all within the past year.
DXPE is also sporting a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DXPE's PEG compares to its industry's average PEG of 1.66. Within the past year, DXPE's PEG has been as high as 1 and as low as 0.65, with a median of 0.77.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DXPE has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.21.
Finally, investors will want to recognize that DXPE has a P/CF ratio of 8.50. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.10. Over the past year, DXPE's P/CF has been as high as 15.90 and as low as 8.07, with a median of 10.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DXP Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DXPE feels like a great value stock at the moment.