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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Dish Network (DISH). DISH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.60, which compares to its industry's average of 20.26. Over the past year, DISH's Forward P/E has been as high as 21.68 and as low as 8.42, with a median of 17.72.

Another notable valuation metric for DISH is its P/B ratio of 1.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.03. Within the past 52 weeks, DISH's P/B has been as high as 2.18 and as low as 0.82, with a median of 1.69.

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. DISH has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.9.

Finally, investors should note that DISH has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DISH's P/CF compares to its industry's average P/CF of 8.81. Within the past 12 months, DISH's P/CF has been as high as 11.48 and as low as 5.05, with a median of 9.11.

These are only a few of the key metrics included in Dish Network'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, DISH looks like an impressive value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DISH Network Corporation (DISH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.