We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy DXP Enterprises (DXPE) Stock?
Read MoreHide Full Article
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.
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.
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.
DXP Enterprises (DXPE - Free Report) is a stock many investors are watching right now. DXPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.92, which compares to its industry's average of 21.05. 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 14.31.
We also note that DXPE holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DXPE's PEG compares to its industry's average PEG of 1.98. 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 2.09. 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 5.61. Within the past 52 weeks, 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 0.54. This compares to its industry's average P/S of 1.39.
Finally, investors will want to recognize that DXPE has a P/CF ratio of 10.43. 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 16.84. Within the past 12 months, DXPE's P/CF has been as high as 12.59 and as low as 8.07, with a median of 9.64.
These are only a few of the key metrics included in DXP Enterprises'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, DXPE looks like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy DXP Enterprises (DXPE) Stock?
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.
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.
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.
DXP Enterprises (DXPE - Free Report) is a stock many investors are watching right now. DXPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.92, which compares to its industry's average of 21.05. 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 14.31.
We also note that DXPE holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DXPE's PEG compares to its industry's average PEG of 1.98. 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 2.09. 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 5.61. Within the past 52 weeks, 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 0.54. This compares to its industry's average P/S of 1.39.
Finally, investors will want to recognize that DXPE has a P/CF ratio of 10.43. 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 16.84. Within the past 12 months, DXPE's P/CF has been as high as 12.59 and as low as 8.07, with a median of 9.64.
These are only a few of the key metrics included in DXP Enterprises'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, DXPE looks like an impressive value stock at the moment.