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Is DXP Enterprises (DXPE) a Great Value Stock 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.30. This compares to its industry's average Forward P/E of 20.11. Over the past 52 weeks, DXPE's Forward P/E has been as high as 19.99 and as low as 11.35, with a median of 14.30.
We also note that DXPE holds a PEG ratio of 0.84. 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 industry currently sports an average PEG of 1.85. 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.
Another notable valuation metric for DXPE is its P/B ratio of 1.93. 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 stock's P/B looks attractive against its industry's average P/B of 5.36. Over the past year, DXPE's P/B has been as high as 2.50 and as low as 1.58, with a median of 1.90.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DXPE has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.35.
Finally, our model also underscores that DXPE has a P/CF ratio of 9.61. 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. DXPE's current P/CF looks attractive when compared to its industry's average P/CF of 16.11. Over the past 52 weeks, DXPE's P/CF has been as high as 12.59 and as low as 8.07, with a median of 9.63.
These are just a handful of the figures considered in DXP Enterprises'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 DXPE is an impressive value stock right now.
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Is DXP Enterprises (DXPE) a Great Value Stock 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.30. This compares to its industry's average Forward P/E of 20.11. Over the past 52 weeks, DXPE's Forward P/E has been as high as 19.99 and as low as 11.35, with a median of 14.30.
We also note that DXPE holds a PEG ratio of 0.84. 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 industry currently sports an average PEG of 1.85. 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.
Another notable valuation metric for DXPE is its P/B ratio of 1.93. 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 stock's P/B looks attractive against its industry's average P/B of 5.36. Over the past year, DXPE's P/B has been as high as 2.50 and as low as 1.58, with a median of 1.90.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DXPE has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.35.
Finally, our model also underscores that DXPE has a P/CF ratio of 9.61. 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. DXPE's current P/CF looks attractive when compared to its industry's average P/CF of 16.11. Over the past 52 weeks, DXPE's P/CF has been as high as 12.59 and as low as 8.07, with a median of 9.63.
These are just a handful of the figures considered in DXP Enterprises'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 DXPE is an impressive value stock right now.