Are Investors Undervaluing Deutsche Post AG (DPSGY) Right Now?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Deutsche Post AG (DPSGY). DPSGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.13, while its industry has an average P/E of 38.39. Over the past 52 weeks, DPSGY's Forward P/E has been as high as 16.79 and as low as 10.60, with a median of 14.79.

DPSGY is also sporting a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DPSGY's PEG compares to its industry's average PEG of 3.26. Within the past year, DPSGY's PEG has been as high as 1.93 and as low as 0.92, with a median of 1.56.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.9. This compares to its industry's average P/S of 1.15.

Finally, our model also underscores that DPSGY has a P/CF ratio of 8.78. 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 20.68. Over the past year, DPSGY's P/CF has been as high as 8.86 and as low as 5.09, with a median of 7.98.

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

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