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Should Value Investors Buy Crawford & Company (CRD.B) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Crawford & Company (CRD.B - Free Report) . CRD.B is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.23, which compares to its industry's average of 19.01. Over the past 52 weeks, CRD.B's Forward P/E has been as high as 9.29 and as low as 6.36, with a median of 7.48.

Investors should also recognize that CRD.B has a P/B ratio of 3.21. The P/B ratio pits a stock's market value against 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 3.80. CRD.B's P/B has been as high as 3.21 and as low as 1.37, with a median of 2.39, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRD.B has a P/S ratio of 0.36. This compares to its industry's average P/S of 1.01.

Investors could also keep in mind Worley Limited (WYGPY - Free Report) , an Business - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Worley Limited has a P/B ratio of 1.48 while its industry's price-to-book ratio sits at 3.80. For WYGPY, this valuation metric has been as high as 1.51, as low as 1.03, with a median of 1.31 over the past year.

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


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