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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Dick's Sporting Goods (DKS) is a stock many investors are watching right now. DKS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.40. This compares to its industry's average Forward P/E of 17.07. Over the past year, DKS's Forward P/E has been as high as 24.63 and as low as 10.19, with a median of 13.85.
Another notable valuation metric for DKS is its P/B ratio of 3.63. 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 stock's P/B looks solid versus its industry's average P/B of 7.96. Over the past 12 months, DKS's P/B has been as high as 3.84 and as low as 2.07, with a median of 2.80.
Finally, our model also underscores that DKS has a P/CF ratio of 8.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DKS's P/CF compares to its industry's average P/CF of 19.62. Over the past year, DKS's P/CF has been as high as 9.77 and as low as 6.34, with a median of 8.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Dick's Sporting Goods is likely undervalued currently. And when considering the strength of its earnings outlook, DKS sticks out at as one of the market's strongest value stocks.
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DICKS Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
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