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Should Value Investors Buy California Resources (CRC) Stock?
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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 California Resources (CRC - Free Report) . CRC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for CRC is its P/B ratio of 1.27. 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 3.35. CRC's P/B has been as high as 1.86 and as low as 0.97, with a median of 1.60, 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. CRC has a P/S ratio of 1.45. This compares to its industry's average P/S of 2.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that California Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRC feels like a great value stock at the moment.
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Should Value Investors Buy California Resources (CRC) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 California Resources (CRC - Free Report) . CRC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for CRC is its P/B ratio of 1.27. 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 3.35. CRC's P/B has been as high as 1.86 and as low as 0.97, with a median of 1.60, 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. CRC has a P/S ratio of 1.45. This compares to its industry's average P/S of 2.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that California Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRC feels like a great value stock at the moment.