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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.
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.
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.
Deutsche Telekom (DTEGY) is a stock many investors are watching right now. DTEGY 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 14.02, which compares to its industry's average of 15.90. DTEGY's Forward P/E has been as high as 16.16 and as low as 11.25, with a median of 12.82, all within the past year.
Investors will also notice that DTEGY has a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DTEGY's industry has an average PEG of 1.69 right now. Over the past 52 weeks, DTEGY's PEG has been as high as 2.25 and as low as 0.88, with a median of 1.18.
Investors should also recognize that DTEGY has a P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus 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 2.01. Within the past 52 weeks, DTEGY's P/B has been as high as 1.59 and as low as 1.09, with a median of 1.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom is likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY sticks out at as one of the market's strongest value stocks.
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Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report