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Cross Country Healthcare (CCRN - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and F for Growth. Normally, I want to see a strong growth style score and weak value style score as that will tell me that I am on the right path. CCRN probably should have an A for Value and an A for Growth. The company reported earnings last month so let’s take a deeper look at this stock in this Bull of the Day article.
Description
Cross Country Healthcare provides healthcare workforce solutions and staffing services. Their diverse client base includes both clinical and nonclinical settings, servicing acute care hospitals, physician practice groups, outpatient and ambulatory-care centers, nursing facilities. They are able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions. The company was founded in 1986 and is its corporate headquarters are in Boca Raton, FL.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For CCRN, I see a good history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 75%, so the beats are pretty big.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For CCRN, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.20 to $1.09.
Next quarter has also seen a large increase from $0.14 to $0.41.
The full year 2021 has moved from $1.59 to $2.76.
Next year has seen an increase from $0.80 to $1.56.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The forward earnings multiple for CCRN checks in at 9x, which is extremely low given topline growth last quarter came in at 93%. The price to book mulitple is 4.4x, and that is just a little over where value investors would get excited as they like a book multiple of 3x or lower. The price to sales multiple checks in at 0.7x.
Margins have moved higher for this stock over the last three quarters and that coupled with topline growth is fueling higher earnings estimates. I see operating margins moving from 4.04% to 4.69% and then to 5.48% over the last three quarters.
Chart
Cross Country Healthcare, Inc. Price, Consensus and EPS Surprise
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Bull Of The Day: Cross Country Healthcare (CCRN)
Cross Country Healthcare (CCRN - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and F for Growth. Normally, I want to see a strong growth style score and weak value style score as that will tell me that I am on the right path. CCRN probably should have an A for Value and an A for Growth. The company reported earnings last month so let’s take a deeper look at this stock in this Bull of the Day article.
Description
Cross Country Healthcare provides healthcare workforce solutions and staffing services. Their diverse client base includes both clinical and nonclinical settings, servicing acute care hospitals, physician practice groups, outpatient and ambulatory-care centers, nursing facilities. They are able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions. The company was founded in 1986 and is its corporate headquarters are in Boca Raton, FL.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For CCRN, I see a good history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 75%, so the beats are pretty big.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For CCRN, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.20 to $1.09.
Next quarter has also seen a large increase from $0.14 to $0.41.
The full year 2021 has moved from $1.59 to $2.76.
Next year has seen an increase from $0.80 to $1.56.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The forward earnings multiple for CCRN checks in at 9x, which is extremely low given topline growth last quarter came in at 93%. The price to book mulitple is 4.4x, and that is just a little over where value investors would get excited as they like a book multiple of 3x or lower. The price to sales multiple checks in at 0.7x.
Margins have moved higher for this stock over the last three quarters and that coupled with topline growth is fueling higher earnings estimates. I see operating margins moving from 4.04% to 4.69% and then to 5.48% over the last three quarters.
Chart
Cross Country Healthcare, Inc. Price, Consensus and EPS Surprise
Cross Country Healthcare, Inc. price-consensus-eps-surprise-chart | Cross Country Healthcare, Inc. Quote