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Should Value Investors Buy Criteo (CRTO) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 to watch right now is Criteo (CRTO - Free Report) . CRTO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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. CRTO has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.7.

Finally, investors should note that CRTO has a P/CF ratio of 6.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.17. Within the past 12 months, CRTO's P/CF has been as high as 18.23 and as low as 6.35, with a median of 13.65.

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


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