Back to top

Image: Bigstock

Is CRA International (CRAI) a Great Value Stock Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 CRA International (CRAI - Free Report) . CRAI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.82. This compares to its industry's average Forward P/E of 24.65. Over the past 52 weeks, CRAI's Forward P/E has been as high as 17.98 and as low as 6.65, with a median of 14.25.

Investors should also note that CRAI holds a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CRAI's PEG compares to its industry's average PEG of 2.30. Within the past year, CRAI's PEG has been as high as 1.38 and as low as 0.51, with a median of 1.10.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRAI has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.25.

Finally, we should also recognize that CRAI has a P/CF ratio of 6.71. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.64. Over the past year, CRAI's P/CF has been as high as 11.06 and as low as 4.32, with a median of 7.88.

These are just a handful of the figures considered in CRA International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRAI is an impressive value stock right now.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Charles River Associates (CRAI) - free report >>

Published in