Sabrient rates Deluxe Corporation (DLX) a strong buy for its solid value profile, which makes it one of the better value stocks in today's market despite modest growth and momentum scores. Rock solid yields investors love growth at a reasonable price stocks, but value is more important than growth rates. Weakness in the projected earnings growth gives it a low earnings score from Sabrient. But with a Sabrient Fundamental Score of 98.3 (which measures a company's financial health, including its balance sheet, cash flow, revenue, and earnings quality), Deluxe is significantly higher than the average of its industry group, 57.0.
SmartConsensus gave DLX and its five peers in the commercial printing services industry hold ratings. Not a lot of excitement there. DLX's accounting practices are within an acceptable range and risk is average. As a solid value stock, it should outperform the market over the longer-term, and with its dividend yield of over 4%, it pays to hold this one. The middle of August should be its next ex-dividend date.
NakedValue noted that DLX was an under-the-radar low P/E dividend-paying stock. That was the good part, but then it described the earmarks of a maturing industry with increasing margins and decreasing sales. Like most companies in maturing industries, endeavors into the online services is one of its goals. Deluxe recently purchased Banker's Dashboard, which give banks daily access to their financial position through online tools.
The PE ratio (ttm) is just 8.42, and forward looking, it is expected to decline slightly.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DLX over the next 72 hours.