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Should Value Investors Buy Charles River Associates (CRAI) Stock?
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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.
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.
Charles River Associates (CRAI - Free Report) is a stock many investors are watching right now. CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 20.23 right now. For comparison, its industry sports an average P/E of 24.21. CRAI's Forward P/E has been as high as 20.90 and as low as 14.50, with a median of 16.64, all within the past year.
Investors will also notice that CRAI has a PEG ratio of 1.42. 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 2.24. Within the past year, CRAI's PEG has been as high as 1.42 and as low as 0.97, with a median of 1.12.
Another valuation metric that we should highlight is CRAI's P/B ratio of 4.26. 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 company's current P/B looks solid when compared to its industry's average P/B of 6.08. Over the past year, CRAI's P/B has been as high as 4.26 and as low as 2.78, with a median of 3.21.
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 1.44. This compares to its industry's average P/S of 1.84.
Finally, investors will want to recognize that CRAI has a P/CF ratio of 12.51. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.79. Within the past 12 months, CRAI's P/CF has been as high as 12.51 and as low as 8.68, with a median of 9.75.
If you're looking for another solid Consulting Services value stock, take a look at Information Services Group (III - Free Report) . III is a # 2 (Buy) stock with a Value score of A.
Information Services Group is currently trading with a Forward P/E ratio of 12.70 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 24.21 and average PEG ratio of 2.24.
III's price-to-earnings ratio has been as high as 23.58 and as low as 10.55, with a median of 15.04, while its PEG ratio has been as high as 1.35 and as low as 0.60, with a median of 0.84, all within the past year.
Furthermore, Information Services Group holds a P/B ratio of 2.88 and its industry's price-to-book ratio is 6.08. III's P/B has been as high as 4.77, as low as 2.39, with a median of 3.27 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Charles River Associates and Information Services Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRAI and III feels like a great value stock at the moment.
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Should Value Investors Buy Charles River Associates (CRAI) Stock?
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.
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.
Charles River Associates (CRAI - Free Report) is a stock many investors are watching right now. CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 20.23 right now. For comparison, its industry sports an average P/E of 24.21. CRAI's Forward P/E has been as high as 20.90 and as low as 14.50, with a median of 16.64, all within the past year.
Investors will also notice that CRAI has a PEG ratio of 1.42. 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 2.24. Within the past year, CRAI's PEG has been as high as 1.42 and as low as 0.97, with a median of 1.12.
Another valuation metric that we should highlight is CRAI's P/B ratio of 4.26. 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 company's current P/B looks solid when compared to its industry's average P/B of 6.08. Over the past year, CRAI's P/B has been as high as 4.26 and as low as 2.78, with a median of 3.21.
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 1.44. This compares to its industry's average P/S of 1.84.
Finally, investors will want to recognize that CRAI has a P/CF ratio of 12.51. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.79. Within the past 12 months, CRAI's P/CF has been as high as 12.51 and as low as 8.68, with a median of 9.75.
If you're looking for another solid Consulting Services value stock, take a look at Information Services Group (III - Free Report) . III is a # 2 (Buy) stock with a Value score of A.
Information Services Group is currently trading with a Forward P/E ratio of 12.70 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 24.21 and average PEG ratio of 2.24.
III's price-to-earnings ratio has been as high as 23.58 and as low as 10.55, with a median of 15.04, while its PEG ratio has been as high as 1.35 and as low as 0.60, with a median of 0.84, all within the past year.
Furthermore, Information Services Group holds a P/B ratio of 2.88 and its industry's price-to-book ratio is 6.08. III's P/B has been as high as 4.77, as low as 2.39, with a median of 3.27 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Charles River Associates and Information Services Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRAI and III feels like a great value stock at the moment.