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Are Investors Undervaluing Credit Agricole (CRARY) Right Now?

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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 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 Credit Agricole (CRARY - Free Report) . CRARY 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 6.35. This compares to its industry's average Forward P/E of 7.05. CRARY's Forward P/E has been as high as 10.38 and as low as 5.80, with a median of 7.85, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CRARY has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.15.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Credit Agricole is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRARY feels like a great value stock at the moment.


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