Yahoo Finance Should Value Investors Buy DCC (DCCPF) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is DCC (DCCPF). DCCPF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.58, while its industry has an average P/E of 16.76. DCCPF's Forward P/E has been as high as 13.82 and as low as 8.58, with a median of 11.26, all within the past year.
Another valuation metric that we should highlight is DCCPF's P/B ratio of 1.20. The P/B is a method of comparing a stock's market value to 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 3.58. Over the past 12 months, DCCPF's P/B has been as high as 1.98 and as low as 1.20, with a median of 1.53.
If you're looking for another solid Business - Services value stock, take a look at Mitie Group (MITFY). MITFY is a # 2 (Buy) stock with a Value score of A.
Additionally, Mitie Group has a P/B ratio of 1.64 while its industry's price-to-book ratio sits at 3.58. For MITFY, this valuation metric has been as high as 2.45, as low as 1.54, with a median of 1.84 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DCC and Mitie Group are likely undervalued currently. And when considering the strength of its earnings outlook, DCCPF and MITFY sticks out as one of the market's strongest value stocks.
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DCC (DCCPF) : Free Stock Analysis Report
Mitie Group PLC. (MITFY) : Free Stock Analysis Report
