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Should Value Investors Buy Easterly Government Properties (DEA) Stock?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Easterly Government Properties (DEA - Free Report) . DEA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.44, while its industry has an average P/E of 15.97. Over the last 12 months, DEA's Forward P/E has been as high as 12.42 and as low as 6.61, with a median of 8.75.
Another notable valuation metric for DEA is its P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with 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 1.86. DEA's P/B has been as high as 1.11 and as low as 0.64, with a median of 0.81, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DEA has a P/S ratio of 2.99. This compares to its industry's average P/S of 3.84.
Finally, we should also recognize that DEA has a P/CF ratio of 8.86. 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. DEA's P/CF compares to its industry's average P/CF of 15.64. Over the past 52 weeks, DEA's P/CF has been as high as 13.97 and as low as 7.71, with a median of 10.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Easterly Government Properties is likely undervalued currently. And when considering the strength of its earnings outlook, DEA sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Easterly Government Properties (DEA) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Easterly Government Properties (DEA - Free Report) . DEA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.44, while its industry has an average P/E of 15.97. Over the last 12 months, DEA's Forward P/E has been as high as 12.42 and as low as 6.61, with a median of 8.75.
Another notable valuation metric for DEA is its P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with 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 1.86. DEA's P/B has been as high as 1.11 and as low as 0.64, with a median of 0.81, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DEA has a P/S ratio of 2.99. This compares to its industry's average P/S of 3.84.
Finally, we should also recognize that DEA has a P/CF ratio of 8.86. 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. DEA's P/CF compares to its industry's average P/CF of 15.64. Over the past 52 weeks, DEA's P/CF has been as high as 13.97 and as low as 7.71, with a median of 10.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Easterly Government Properties is likely undervalued currently. And when considering the strength of its earnings outlook, DEA sticks out as one of the market's strongest value stocks.