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Should Value Investors Buy Wireless Ronin Technologies (CREX) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Wireless Ronin Technologies (CREX - Free Report) is a stock many investors are watching right now. CREX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is CREX's P/B ratio of 0.90. The P/B is a method of comparing a stock's market value to 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 2.66. CREX's P/B has been as high as 0.93 and as low as 0.47, with a median of 0.55, over the past year.

Finally, our model also underscores that CREX has a P/CF ratio of 8.21. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.63. Over the past year, CREX's P/CF has been as high as 8.51 and as low as 2.07, with a median of 2.94.

If you're looking for another solid Internet - Software value stock, take a look at StoneCo (STNE - Free Report) . STNE is a # 2 (Buy) stock with a Value score of A.

Shares of StoneCo currently holds a Forward P/E ratio of 16.63, and its PEG ratio is 0.30. In comparison, its industry sports average P/E and PEG ratios of 41.35 and 1.96.

Over the last 12 months, STNE's P/E has been as high as 27.54, as low as 6.70, with a median of 18.18, and its PEG ratio has been as high as 0.67, as low as 0.30, with a median of 0.48.

StoneCo also has a P/B ratio of 1.55 compared to its industry's price-to-book ratio of 2.66. Over the past year, its P/B ratio has been as high as 1.76, as low as 0.94, with a median of 1.23.

These are just a handful of the figures considered in Wireless Ronin Technologies and StoneCo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CREX and STNE is an impressive value stock right now.


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