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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One company value investors might notice 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 10.82, while its industry has an average P/E of 18.40. 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 9.03.

Another valuation metric that we should highlight is CRAWA's P/B ratio of 1.87. Investors use the P/B ratio to look at a stock's market value versus 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 4.32. CRAWA's P/B has been as high as 2.33 and as low as 1.10, with a median of 1.58, over the past year.

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 0.71. This compares to its industry's average P/S of 1.42.

Finally, investors should note that CRAWA has a P/CF ratio of 5.35. 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 19.07. CRAWA's P/CF has been as high as 8.09 and as low as 3.92, with a median of 5.28, all within the past year.

These are just a handful of the figures considered in Crawford United Corporation'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 CRAWA is an impressive value stock right now.


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