Yahoo Finance Should Value Investors Buy DHI Group (DHX) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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.
Value investors also use the P/S ratio. The P/S ratio is 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. DHX has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.18.
Finally, investors should note that DHX has a P/CF ratio of 7.71. 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. DHX's P/CF compares to its industry's average P/CF of 30.08. DHX's P/CF has been as high as 16.56 and as low as -24.35, with a median of 11.86, all within the past year.
Investors could also keep in mind Perion Network (PERI), an Internet - Content stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Perion Network are currently trading at a forward earnings multiple of 10.89 and a PEG ratio of 0.44 compared to its industry's P/E and PEG ratios of 22.17 and 1.21, respectively.
PERI's Forward P/E has been as high as 15.19 and as low as 9.31, with a median of 11.20. During the same time period, its PEG ratio has been as high as 0.61, as low as 0.37, with a median of 0.45.
Perion Network also has a P/B ratio of 2.41 compared to its industry's price-to-book ratio of 6.39. Over the past year, its P/B ratio has been as high as 3.16, as low as 1.54, with a median of 2.07.
These are just a handful of the figures considered in DHI Group and Perion Network'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 DHX and PERI is an impressive value stock right now.
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DHI Group, Inc. (DHX) : Free Stock Analysis Report
Perion Network Ltd (PERI) : Free Stock Analysis Report
