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Should Value Investors Buy D S SMITH (DITHF) Stock?

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is D S SMITH (DITHF). DITHF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.32. This compares to its industry's average Forward P/E of 12.04. Over the past 52 weeks, DITHF's Forward P/E has been as high as 12.80 and as low as 7.99, with a median of 10.33.

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Another valuation metric that we should highlight is DITHF's P/B ratio of 1.28. 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. DITHF's current P/B looks attractive when compared to its industry's average P/B of 2.29. DITHF's P/B has been as high as 1.45 and as low as 0.90, with a median of 1.09, over the past year.

Another great Paper and Related Products stock you could consider is MONDI PLC UNS (MONDY), which is a # 2 (Buy) stock with a Value Score of A.

Shares of MONDI PLC UNS currently holds a Forward P/E ratio of 16.87, and its PEG ratio is 0.86. In comparison, its industry sports average P/E and PEG ratios of 12.04 and 0.87.

MONDY's price-to-earnings ratio has been as high as 25.54 and as low as 13.49, with a median of 18.24, while its PEG ratio has been as high as 4.87 and as low as 0.86, with a median of 2.33, all within the past year.

MONDI PLC UNS sports a P/B ratio of 1.23 as well; this compares to its industry's price-to-book ratio of 2.29. In the past 52 weeks, MONDY's P/B has been as high as 1.47, as low as 1.11, with a median of 1.23.

These are just a handful of the figures considered in D S SMITH and MONDI PLC UNS'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 DITHF and MONDY is an impressive value stock right now.

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D S SMITH (DITHF) : Free Stock Analysis Report

MONDI PLC UNS (MONDY) : Free Stock Analysis Report

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Zacks Investment Research