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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is CRA International (CRAI - Free Report) . CRAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 18.22 right now. For comparison, its industry sports an average P/E of 25.66. Over the last 12 months, CRAI's Forward P/E has been as high as 21.72 and as low as 7.55, with a median of 13.66.

Investors should also note that CRAI holds a PEG ratio of 1.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRAI's PEG compares to its industry's average PEG of 2.39. Over the past 52 weeks, CRAI's PEG has been as high as 1.67 and as low as 0.58, with a median of 1.05.

Another notable valuation metric for CRAI is its P/B ratio of 2.49. Investors use the P/B ratio to look at a stock's market value versus 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. Within the past 52 weeks, CRAI's P/B has been as high as 2.70 and as low as 1, with a median of 1.62.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.01. This compares to its industry's average P/S of 1.84.

Finally, investors should note that CRAI has a P/CF ratio of 10.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CRAI's P/CF compares to its industry's average P/CF of 14.64. Over the past year, CRAI's P/CF has been as high as 11.62 and as low as 4.91, with a median of 7.23.

These are only a few of the key metrics included in CRA International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CRAI looks like an impressive value stock at the moment.


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