Are Investors Undervaluing Donnelley Financial Solutions (DFIN) 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...
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Donnelley Financial Solutions (DFIN). DFIN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that DFIN has a P/B ratio of 4.03. 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 6.24. Over the past year, DFIN's P/B has been as high as 4.08 and as low as 1.52, with a median of 3.46.
Finally, investors should note that DFIN has a P/CF ratio of 11.70. 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. DFIN's current P/CF looks attractive when compared to its industry's average P/CF of 35.57. DFIN's P/CF has been as high as 20.66 and as low as 3.93, with a median of 11.56, all within the past year.
These are only a few of the key metrics included in Donnelley Financial Solutions's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DFIN looks like an impressive value stock at the moment.
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