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Is Dish Network (DISH) a Great Value Stock Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Dish Network (DISH). DISH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.85, which compares to its industry's average of 17.91. DISH's Forward P/E has been as high as 21.68 and as low as 8.35, with a median of 14.14, all within the past year.

We should also highlight that DISH has a P/B ratio of 1.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.96. Over the past 12 months, DISH's P/B has been as high as 2.22 and as low as 1.36, with a median of 1.81.

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. DISH has a P/S ratio of 1.17. This compares to its industry's average P/S of 2.3.

Finally, investors will want to recognize that DISH has a P/CF ratio of 8.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DISH's current P/CF looks attractive when compared to its industry's average P/CF of 9.32. Over the past 52 weeks, DISH's P/CF has been as high as 11.01 and as low as 3.76, with a median of 6.36.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Dish Network is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DISH feels like a great value stock at the moment.


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