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Is Crawford United Corporation (CRAWA) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.94 right now. For comparison, its industry sports an average P/E of 17.86. 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 2.04. 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 4.95. Over the past 12 months, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRAWA has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.68.

Finally, our model also underscores that CRAWA has a P/CF ratio of 6.05. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CRAWA's P/CF compares to its industry's average P/CF of 18.65. CRAWA's P/CF has been as high as 9.28 and as low as 3.92, with a median of 5.68, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Crawford United Corporation is likely undervalued currently. And when considering the strength of its earnings outlook, CRAWA sticks out at as one of the market's strongest value stocks.


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