Back to top

Image: Bigstock

Should Value Investors Buy Crawford United Corporation (CRAWA) Stock?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Crawford United Corporation (CRAWA - Free Report) is a stock many investors are watching right now. CRAWA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.26, while its industry has an average P/E of 19.90. 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 9.27.

Another notable valuation metric for CRAWA is its P/B ratio of 1.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.08. 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 1.68.

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 0.67. This compares to its industry's average P/S of 1.43.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Crawford United Corporation (CRAWA) - free report >>

Published in