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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Dish Network (DISH) is a stock many investors are watching right now. DISH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.01 right now. For comparison, its industry sports an average P/E of 17.12. Over the past year, DISH's Forward P/E has been as high as 25.34 and as low as 11.52, with a median of 14.43.

Another valuation metric that we should highlight is DISH's P/B ratio of 1.70. 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 2.74. Over the past year, DISH's P/B has been as high as 4.19 and as low as 1.59, with a median of 2.13.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DISH has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.17.

Finally, investors will want to recognize that DISH has a P/CF ratio of 4.69. 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 5.83. Over the past year, DISH's P/CF has been as high as 13.55 and as low as 4.39, with a median of 5.83.

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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