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3 Reasons Value Stock Investors Will Love Cross Country Healthcare (CCRN)

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Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.

This method discovered several great candidates for value-oriented investors, but today let’s focus on Cross Country Healthcare, Inc. (CCRN - Free Report) as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for CCRN’s status as a solid value stock below:

PEG Ratio for CCRN

While earnings are definitely important, it is vital to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio as this metric looks to show investors how much they are paying for each unit of earnings growth.

CCRN manages to impress on this front as well, as the company’s PEG is just 1.22, suggesting that Cross Country is trading as a relative bargain right now. This is particularly the case when you compare this PEG to the industry, as the broader segment has an average PEG of 1.28 in comparison.

CROSS COUNTRY PEG Ratio (TTM)

Price/Cash Flow for Cross Country Stock

An often overlooked ratio that can still be a great indicator of value is the price/cash flow metric. This reading is preferred by some since it avoids amortization and depreciation concerns and can give a more accurate picture of the financial health in a business.

The P/CF ratio for CCRN comes in at 10.64, and since investors are generally looking for a reading under 20 here, this is pretty good news. Meanwhile, we should also point out that the industry average for this metric is 13.03, so Cross Country has its peers beat in this regard too.

CCRN Earnings Estimate Revisions Moving in the Right Direction

The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow CCRN stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Cross Countrynow.

Over the past 60 days, 3 earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that 3 estimates have moved upwards with none downward revisions for the next year time frame too.  These revisions have helped to boost the consensus estimate as 60 days ago CCRN was expected to post earnings of 58 cents per share for the full year though today it looks to have EPS of 68 cents for the full year.

Bottom Line

For the reasons detailed above, investors shouldn’t be surprised to read that we have CCRN as a stock with a Value Score of ‘A’ and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So if you are a value investor, definitely keep CCRN on your short list as this looks to be a stock that is very well-positioned for gains in the near term.

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