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Should Value Investors Buy Crawford United Corporation (CRAWA) 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.

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 company to watch right now is Crawford United Corporation (CRAWA - Free Report) . CRAWA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.03, which compares to its industry's average of 18.80. Over the past 52 weeks, CRAWA's Forward P/E has been as high as 11.90 and as low as 6.61, with a median of 8.40.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CRAWA has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.68.

Finally, investors should note that CRAWA has a P/CF ratio of 5.60. 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. CRAWA's P/CF compares to its industry's average P/CF of 19.81. Over the past 52 weeks, CRAWA's P/CF has been as high as 11.06 and as low as 3.92, with a median of 6.08.

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


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