Are Investors Undervaluing DHI Group (DHX) 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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is DHI Group (DHX). DHX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DHX has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.25.
Finally, investors should note that DHX has a P/CF ratio of 8.63. 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. DHX's current P/CF looks attractive when compared to its industry's average P/CF of 33.23. Within the past 12 months, DHX's P/CF has been as high as 16.56 and as low as -19.73, with a median of 11.86.
Investors could also keep in mind Perion Network (PERI), an Internet - Content stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Perion Network are currently trading at a forward earnings multiple of 11.68 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 24.26 and 1.32, respectively.
PERI's price-to-earnings ratio has been as high as 15.19 and as low as 9.31, with a median of 11.21, while its PEG ratio has been as high as 0.61 and as low as 0.37, with a median of 0.45, all within the past year.
Additionally, Perion Network has a P/B ratio of 2.59 while its industry's price-to-book ratio sits at 7.04. For PERI, this valuation metric has been as high as 3.16, as low as 1.54, with a median of 2.14 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DHI Group and Perion Network are likely undervalued currently. And when considering the strength of its earnings outlook, DHX and PERI sticks out as one of the market's strongest value stocks.
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DHI Group, Inc. (DHX) : Free Stock Analysis Report
Perion Network Ltd (PERI) : Free Stock Analysis Report
