Is Dish Network (DISH) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Dish Network (DISH). DISH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.97, while its industry has an average P/E of 19.39. Over the last 12 months, DISH's Forward P/E has been as high as 18.89 and as low as 10.72, with a median of 13.42.
Another valuation metric that we should highlight is DISH's P/B ratio of 1.55. 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. This stock's P/B looks solid versus its industry's average P/B of 3.41. Over the past year, DISH's P/B has been as high as 1.80 and as low as 1.03, with a median of 1.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 1.27. This compares to its industry's average P/S of 2.54.
Finally, investors should note that DISH has a P/CF ratio of 8.34. 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 13.46. Within the past 12 months, DISH's P/CF has been as high as 10.81 and as low as 6.86, with a median of 8.65.
These are just a handful of the figures considered in Dish Network'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 DISH is an impressive value stock right now.
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