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.
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.
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 company to watch right now is DHI Group (DHX). DHX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 23.02 right now. For comparison, its industry sports an average P/E of 23.92. Over the last 12 months, DHX's Forward P/E has been as high as 23.02 and as low as 8.99, with a median of 12.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DHX has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DHI Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DHX feels like a great value stock at the moment.
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