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Are Investors Undervaluing Deluxe (DLX) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.35. This compares to its industry's average Forward P/E of 9.18. Over the past 52 weeks, DLX's Forward P/E has been as high as 6.95 and as low as 3.90, with a median of 5.28.
Investors should also note that DLX holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DLX's industry currently sports an average PEG of 0.72. Over the last 12 months, DLX's PEG has been as high as 0.58 and as low as 0.32, with a median of 0.44.
Another notable valuation metric for DLX is its P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.86. Within the past 52 weeks, DLX's P/B has been as high as 1.75 and as low as 0.98, with a median of 1.34.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DLX has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.6.
Finally, investors should note that DLX has a P/CF ratio of 3.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.04. Over the past year, DLX's P/CF has been as high as 3.89 and as low as 2.31, with a median of 2.97.
These are just a handful of the figures considered in Deluxe'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 DLX is an impressive value stock right now.
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Are Investors Undervaluing Deluxe (DLX) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.35. This compares to its industry's average Forward P/E of 9.18. Over the past 52 weeks, DLX's Forward P/E has been as high as 6.95 and as low as 3.90, with a median of 5.28.
Investors should also note that DLX holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DLX's industry currently sports an average PEG of 0.72. Over the last 12 months, DLX's PEG has been as high as 0.58 and as low as 0.32, with a median of 0.44.
Another notable valuation metric for DLX is its P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.86. Within the past 52 weeks, DLX's P/B has been as high as 1.75 and as low as 0.98, with a median of 1.34.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DLX has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.6.
Finally, investors should note that DLX has a P/CF ratio of 3.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.04. Over the past year, DLX's P/CF has been as high as 3.89 and as low as 2.31, with a median of 2.97.
These are just a handful of the figures considered in Deluxe'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 DLX is an impressive value stock right now.