Is DIALOG SEMICON (DLGNF) a Great Value Stock 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
DIALOG SEMICON (DLGNF) is a stock many investors are watching right now. DLGNF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.60, while its industry has an average P/E of 13.96. Over the last 12 months, DLGNF's Forward P/E has been as high as 19.19 and as low as 12.36, with a median of 15.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLGNF has a P/S ratio of 2.48. This compares to its industry's average P/S of 2.97.
Finally, our model also underscores that DLGNF has a P/CF ratio of 12.65. 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 stock's P/CF looks attractive against its industry's average P/CF of 26.18. Over the past year, DLGNF's P/CF has been as high as 15.34 and as low as 3.77, with a median of 8.94.
These are just a handful of the figures considered in DIALOG SEMICON's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DLGNF is an impressive value stock right now.
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