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Is Deutsche Post (DPSGY) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is Deutsche Post (DPSGY). DPSGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.69 right now. For comparison, its industry sports an average P/E of 10.93. Over the last 12 months, DPSGY's Forward P/E has been as high as 16.60 and as low as 8.56, with a median of 12.56.

Investors should also recognize that DPSGY has a P/B ratio of 1.93. 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 stock's P/B looks solid versus its industry's average P/B of 3.26. DPSGY's P/B has been as high as 4.50 and as low as 1.81, with a median of 3.58, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DPSGY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.72.

Finally, our model also underscores that DPSGY has a P/CF ratio of 4.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.88. Within the past 12 months, DPSGY's P/CF has been as high as 9.95 and as low as 4.27, with a median of 7.44.

Matson (MATX) may be another strong Transportation - Services stock to add to your shortlist. MATX is a # 2 (Buy) stock with a Value grade of A.

Matson sports a P/B ratio of 1.54 as well; this compares to its industry's price-to-book ratio of 3.26. In the past 52 weeks, MATX's P/B has been as high as 3.21, as low as 1.47, with a median of 2.56.

These are just a handful of the figures considered in Deutsche Post and Matson'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 DPSGY and MATX is an impressive value stock right now.


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