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Is Charles River Associates (CRAI) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Charles River Associates (CRAI - Free Report) . CRAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 19.95, which compares to its industry's average of 24.26. Over the last 12 months, CRAI's Forward P/E has been as high as 20.25 and as low as 14.50, with a median of 16.64.
Investors should also note that CRAI holds a PEG ratio of 1.40. 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 PEG compares to its industry's average PEG of 2.24. CRAI's PEG has been as high as 1.42 and as low as 0.97, with a median of 1.12, all within the past year.
Another valuation metric that we should highlight is CRAI's P/B ratio of 4.34. The P/B ratio pits a stock's market value against 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 5.97. Over the past year, CRAI's P/B has been as high as 4.41 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 1.49. This compares to its industry's average P/S of 1.92.
Finally, our model also underscores that CRAI has a P/CF ratio of 12.78. 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 current P/CF looks attractive when compared to its industry's average P/CF of 15.91. Over the past year, CRAI's P/CF has been as high as 12.98 and as low as 8.70, with a median of 9.78.
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.
Shares of Information Services Group currently holds a Forward P/E ratio of 11.71, and its PEG ratio is 0.69. In comparison, its industry sports average P/E and PEG ratios of 24.26 and 2.24.
III's Forward P/E has been as high as 19.70 and as low as 10.55, with a median of 14.76. During the same time period, its PEG ratio has been as high as 1.09, as low as 0.60, with a median of 0.82.
Additionally, Information Services Group has a P/B ratio of 2.77 while its industry's price-to-book ratio sits at 5.97. For III, this valuation metric has been as high as 4.29, as low as 2.39, with a median of 3.22 over the past year.
These are only a few of the key metrics included in Charles River Associates and Information Services Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRAI and III look like an impressive value stock at the moment.
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Is Charles River Associates (CRAI) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Charles River Associates (CRAI - Free Report) . CRAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 19.95, which compares to its industry's average of 24.26. Over the last 12 months, CRAI's Forward P/E has been as high as 20.25 and as low as 14.50, with a median of 16.64.
Investors should also note that CRAI holds a PEG ratio of 1.40. 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 PEG compares to its industry's average PEG of 2.24. CRAI's PEG has been as high as 1.42 and as low as 0.97, with a median of 1.12, all within the past year.
Another valuation metric that we should highlight is CRAI's P/B ratio of 4.34. The P/B ratio pits a stock's market value against 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 5.97. Over the past year, CRAI's P/B has been as high as 4.41 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 1.49. This compares to its industry's average P/S of 1.92.
Finally, our model also underscores that CRAI has a P/CF ratio of 12.78. 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 current P/CF looks attractive when compared to its industry's average P/CF of 15.91. Over the past year, CRAI's P/CF has been as high as 12.98 and as low as 8.70, with a median of 9.78.
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.
Shares of Information Services Group currently holds a Forward P/E ratio of 11.71, and its PEG ratio is 0.69. In comparison, its industry sports average P/E and PEG ratios of 24.26 and 2.24.
III's Forward P/E has been as high as 19.70 and as low as 10.55, with a median of 14.76. During the same time period, its PEG ratio has been as high as 1.09, as low as 0.60, with a median of 0.82.
Additionally, Information Services Group has a P/B ratio of 2.77 while its industry's price-to-book ratio sits at 5.97. For III, this valuation metric has been as high as 4.29, as low as 2.39, with a median of 3.22 over the past year.
These are only a few of the key metrics included in Charles River Associates and Information Services Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRAI and III look like an impressive value stock at the moment.