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Is Crawford & Company (CRD.A) 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.

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 Crawford & Company (CRD.A - Free Report) . CRD.A is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.50, which compares to its industry's average of 19.35. Over the past 52 weeks, CRD.A's Forward P/E has been as high as 10.45 and as low as 5.98, with a median of 8.10.

Another valuation metric that we should highlight is CRD.A's P/B ratio of 3.57. 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 3.78. CRD.A's P/B has been as high as 3.76 and as low as 1.39, with a median of 2.02, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CRD.A has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.92.

Healthcare Services Group (HCSG - Free Report) may be another strong Business - Services stock to add to your shortlist. HCSG is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Healthcare Services Group holds a P/B ratio of 2.39 and its industry's price-to-book ratio is 3.78. HCSG's P/B has been as high as 3.14, as low as 2.05, with a median of 2.38 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Crawford & Company and Healthcare Services Group are likely undervalued currently. And when considering the strength of its earnings outlook, CRD.A and HCSG sticks out as one of the market's strongest value stocks.


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