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.
One company to watch right now is Dish Network (DISH). DISH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DISH's P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DISH's current P/B looks attractive when compared to its industry's average P/B of 3.11. Over the past 12 months, DISH's P/B has been as high as 2.18 and as low as 1.36, with a median of 1.78.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DISH has a P/S ratio of 1.22. This compares to its industry's average P/S of 2.24.
Finally, we should also recognize that DISH has a P/CF ratio of 8.91. 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. DISH's current P/CF looks attractive when compared to its industry's average P/CF of 9.79. DISH's P/CF has been as high as 11.01 and as low as 3.76, with a median of 6.67, all within the past year.
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.