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Are Investors Undervaluing Dish Network (DISH) Right Now?

Zacks Equity Research

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Dish Network (DISH). DISH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.75, while its industry has an average P/E of 18.12. Over the past 52 weeks, DISH's Forward P/E has been as high as 21.68 and as low as 8.35, with a median of 14.96.

We should also highlight that DISH has a P/B ratio of 1.67. 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. DISH's current P/B looks attractive when compared to its industry's average P/B of 3.10. DISH's P/B has been as high as 2.18 and as low as 1.36, with a median of 1.76, over the past year.

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 1.22. This compares to its industry's average P/S of 2.14.

Finally, our model also underscores that DISH has a P/CF ratio of 8.44. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. DISH's P/CF has been as high as 11.01 and as low as 3.76, with a median of 8, all within the past year.

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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