Why Delek Logistics (DKL) is Such a Great Value Stock Pick Right Now

Zacks Equity Research
May 14, 2014


Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Delek Logistics Partners, LP (DKL).

Delek Logistics in Focus

DKL may be an interesting play thanks to its forward PE of 14.25, its P/S ratio of 0.45, and its decent dividend yield of 5.15%. These factors suggest that Delek Logistics is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that DKL has decent revenue metrics to back up its earnings.

But before you think that Delek Logistics is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 12.1% in the past 30 days, thanks to 3 upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push DKL to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. So really, Delek Logistics is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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DELEK LOGISTICS PARTNERS LP (DKL): Free Stock Analysis Report


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