Is Dish Network (DISH) a Great Value Stock 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Dish Network (DISH) is a stock many investors are watching right now. DISH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We should also highlight that DISH has a P/B ratio of 1.76. 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 3.18. Within the past 52 weeks, DISH's P/B has been as high as 2.18 and as low as 1.36, with a median of 1.76.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DISH has a P/S ratio of 1.23. This compares to its industry's average P/S of 2.2.
Finally, investors should note that DISH has a P/CF ratio of 8.89. 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 10.02. Over the past year, DISH's P/CF has been as high as 11.01 and as low as 3.76, with a median of 8.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dish Network is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DISH feels like a great 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.