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Are Investors Undervaluing Crawford United Corporation (CRAWA) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One stock to keep an eye on is Crawford United Corporation (CRAWA - Free Report) . CRAWA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.79, while its industry has an average P/E of 18.83. Over the past 52 weeks, CRAWA's Forward P/E has been as high as 13.09 and as low as 6.61, with a median of 8.88.

Another notable valuation metric for CRAWA is its P/B ratio of 2.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CRAWA's current P/B looks attractive when compared to its industry's average P/B of 5.03. Over the past year, CRAWA's P/B has been as high as 2.33 and as low as 1.10, with a median of 1.56.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CRAWA has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.81.

Finally, investors should note that CRAWA has a P/CF ratio of 6.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CRAWA's current P/CF looks attractive when compared to its industry's average P/CF of 19.78. Over the past year, CRAWA's P/CF has been as high as 10.43 and as low as 3.92, with a median of 5.68.

These are only a few of the key metrics included in Crawford United Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CRAWA looks like an impressive value stock at the moment.


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