Should Value Investors Buy Dish Network (DISH) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Dish Network (DISH). DISH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.95, while its industry has an average P/E of 19.52. Over the last 12 months, DISH's Forward P/E has been as high as 21.43 and as low as 8.42, with a median of 17.68.
We should also highlight that DISH has a P/B ratio of 1.30. The P/B ratio pits a stock's market value against 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 2.91. Within the past 52 weeks, DISH's P/B has been as high as 1.87 and as low as 0.82, with a median of 1.52.
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 1.17. This compares to its industry's average P/S of 1.96.
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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