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Is Deluxe (DLX) a Great Value Stock Right Now?

Zacks Equity Research

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Deluxe (DLX). DLX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 6.18. This compares to its industry's average Forward P/E of 9.66. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 5.69, with a median of 8.16.

Another valuation metric that we should highlight is DLX's P/B ratio of 1.95. 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 2.78. Over the past year, DLX's P/B has been as high as 3.07 and as low as 1.79, with a median of 2.36.

Finally, investors will want to recognize that DLX has a P/CF ratio of 6.16. 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. DLX's P/CF compares to its industry's average P/CF of 10.08. Over the past 52 weeks, DLX's P/CF has been as high as 9.11 and as low as 5.66, with a median of 7.22.

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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