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Is CRA International (CRAI) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is CRA International (CRAI - Free Report) . CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 18.66, while its industry has an average P/E of 25.75. CRAI's Forward P/E has been as high as 18.66 and as low as 6.65, with a median of 13.59, all within the past year.
We also note that CRAI holds a PEG ratio of 1.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRAI's industry currently sports an average PEG of 2.40. Over the last 12 months, CRAI's PEG has been as high as 1.44 and as low as 0.51, with a median of 1.05.
Another notable valuation metric for CRAI is its P/B ratio of 2.43. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.42. Over the past year, CRAI's P/B has been as high as 2.43 and as low as 0.88, with a median of 1.62.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRAI has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.79.
Finally, investors should note that CRAI has a P/CF ratio of 10.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.64. Within the past 12 months, CRAI's P/CF has been as high as 10.89 and as low as 4.32, with a median of 7.21.
Value investors will likely look at more than just these metrics, but the above data helps show that CRA International is likely undervalued currently. And when considering the strength of its earnings outlook, CRAI sticks out at as one of the market's strongest value stocks.
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Is CRA International (CRAI) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is CRA International (CRAI - Free Report) . CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 18.66, while its industry has an average P/E of 25.75. CRAI's Forward P/E has been as high as 18.66 and as low as 6.65, with a median of 13.59, all within the past year.
We also note that CRAI holds a PEG ratio of 1.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRAI's industry currently sports an average PEG of 2.40. Over the last 12 months, CRAI's PEG has been as high as 1.44 and as low as 0.51, with a median of 1.05.
Another notable valuation metric for CRAI is its P/B ratio of 2.43. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.42. Over the past year, CRAI's P/B has been as high as 2.43 and as low as 0.88, with a median of 1.62.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRAI has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.79.
Finally, investors should note that CRAI has a P/CF ratio of 10.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.64. Within the past 12 months, CRAI's P/CF has been as high as 10.89 and as low as 4.32, with a median of 7.21.
Value investors will likely look at more than just these metrics, but the above data helps show that CRA International is likely undervalued currently. And when considering the strength of its earnings outlook, CRAI sticks out at as one of the market's strongest value stocks.