Are Investors Undervaluing Deluxe (DLX) Right Now?

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.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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 stock to keep an eye on is Deluxe (DLX). DLX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.41 right now. For comparison, its industry sports an average P/E of 9.42. Over the last 12 months, DLX's Forward P/E has been as high as 6.95 and as low as 3.90, with a median of 5.38. Investors should also note that DLX holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DLX's industry has an average PEG of 0.74 right now. Over the past 52 weeks, DLX's PEG has been as high as 0.58 and as low as 0.32, with a median of 0.45. Investors should also recognize that DLX has a P/B ratio of 1.36. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past 12 months, DLX's P/B has been as high as 1.75 and as low as 0.98, with a median of 1.35.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLX has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.58.Finally, our model also underscores that DLX has a P/CF ratio of 3.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DLX's P/CF compares to its industry's average P/CF of 8.09. Within the past 12 months, DLX's P/CF has been as high as 3.89 and as low as 2.31, with a median of 2.97.These figures are just a handful of the metrics value investors tend to look at, but they help show that Deluxe is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLX feels like a great value stock at the moment.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deluxe Corporation (DLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks