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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.55. This compares to its industry's average Forward P/E of 21.65. Over the last 12 months, DXPE's Forward P/E has been as high as 16.08 and as low as 4.27, with a median of 12.77.

Investors will also notice that DXPE has 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 2.04. Over the last 12 months, DXPE's PEG has been as high as 0.91 and as low as 0.65, with a median of 0.76.

Finally, our model also underscores that DXPE has a P/CF ratio of 5.33. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DXPE's P/CF compares to its industry's average P/CF of 16.84. DXPE's P/CF has been as high as 11.64 and as low as 3.23, with a median of 9.13, all within the past year.

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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