Is Dycom Industries (DY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 Dycom Industries (DY). DY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.80 right now. For comparison, its industry sports an average P/E of 14.89. Over the past year, DY's Forward P/E has been as high as 23.33 and as low as 12.13, with a median of 16.61.
Finally, investors will want to recognize that DY has a P/CF ratio of 8.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.45. DY's P/CF has been as high as 11.27 and as low as 6.55, with a median of 9.38, 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 Dycom Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DY feels like a great value stock at the moment.
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Dycom Industries, Inc. (DY) : Free Stock Analysis Report
