Are Investors Undervaluing Screen Holdings Co., Ltd (DINRF) 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 the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Screen Holdings Co., Ltd (DINRF). DINRF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.65 right now. For comparison, its industry sports an average P/E of 21.01. Over the past 52 weeks, DINRF's Forward P/E has been as high as 24.66 and as low as 8.66, with a median of 10.66.
Investors should also note that DINRF holds a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DINRF's industry currently sports an average PEG of 2.54. Within the past year, DINRF's PEG has been as high as 2.47 and as low as 0.87, with a median of 1.06.
These are only a few of the key metrics included in Screen Holdings Co., Ltd'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, DINRF looks like an impressive value stock at the moment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.