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Is DXP Enterprises (DXPE) a Great Value Stock Right Now? September 12, 2024
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.11, which compares to its industry's average of 20.93. Over the past 52 weeks, DXPE's Forward P/E has been as high as 17.28 and as low as 7.02, with a median of 12.69.
Another valuation metric that we should highlight is DXPE's P/B ratio of 2. 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 attractive against its industry's average P/B of 5.29. Over the past year, DXPE's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.81.
Finally, investors should note that DXPE has a P/CF ratio of 8.40. 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 20.99. Within the past 12 months, DXPE's P/CF has been as high as 9.92 and as low as 5.18, with a median of 7.60.
Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is DXP Enterprises (DXPE - Free Report) . DXPE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.11, which compares to its industry's average of 20.93. Over the past 52 weeks, DXPE's Forward P/E has been as high as 17.28 and as low as 7.02, with a median of 12.69.
Another valuation metric that we should highlight is DXPE's P/B ratio of 2. 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 attractive against its industry's average P/B of 5.29. Over the past year, DXPE's P/B has been as high as 2.40 and as low as 1.32, with a median of 1.81.
Finally, investors should note that DXPE has a P/CF ratio of 8.40. 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 20.99. Within the past 12 months, DXPE's P/CF has been as high as 9.92 and as low as 5.18, with a median of 7.60.
Value investors will likely look at more than just these metrics, but the above data helps show that DXP Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, DXPE sticks out at as one of the market's strongest value stocks.