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Are Investors Undervaluing America's Car-Mart (CRMT) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is America's Car-Mart (CRMT - Free Report) . CRMT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.22. This compares to its industry's average Forward P/E of 11.87. Over the last 12 months, CRMT's Forward P/E has been as high as 15.16 and as low as 4.28, with a median of 11.59.
CRMT is also sporting a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRMT's industry currently sports an average PEG of 2.01. CRMT's PEG has been as high as 2.06 and as low as 0.52, with a median of 1.45, all within the past year.
Finally, investors should note that CRMT has a P/CF ratio of 10.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CRMT's P/CF compares to its industry's average P/CF of 11.41. Over the past year, CRMT's P/CF has been as high as 14.80 and as low as 4.39, with a median of 11.18.
Value investors will likely look at more than just these metrics, but the above data helps show that America's Car-Mart is likely undervalued currently. And when considering the strength of its earnings outlook, CRMT sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing America's Car-Mart (CRMT) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is America's Car-Mart (CRMT - Free Report) . CRMT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.22. This compares to its industry's average Forward P/E of 11.87. Over the last 12 months, CRMT's Forward P/E has been as high as 15.16 and as low as 4.28, with a median of 11.59.
CRMT is also sporting a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRMT's industry currently sports an average PEG of 2.01. CRMT's PEG has been as high as 2.06 and as low as 0.52, with a median of 1.45, all within the past year.
Finally, investors should note that CRMT has a P/CF ratio of 10.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CRMT's P/CF compares to its industry's average P/CF of 11.41. Over the past year, CRMT's P/CF has been as high as 14.80 and as low as 4.39, with a median of 11.18.
Value investors will likely look at more than just these metrics, but the above data helps show that America's Car-Mart is likely undervalued currently. And when considering the strength of its earnings outlook, CRMT sticks out at as one of the market's strongest value stocks.