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Is America's CarMart (CRMT) Stock Undervalued Right Now?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is America's CarMart (CRMT - Free Report) . CRMT is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We also note that CRMT holds a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRMT's industry currently sports an average PEG of 0.88. Within the past year, CRMT's PEG has been as high as 0.76 and as low as 0.32, with a median of 0.46.
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. CRMT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that America's CarMart is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRMT feels like a great value stock at the moment.
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Is America's CarMart (CRMT) Stock Undervalued Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is America's CarMart (CRMT - Free Report) . CRMT is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We also note that CRMT holds a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRMT's industry currently sports an average PEG of 0.88. Within the past year, CRMT's PEG has been as high as 0.76 and as low as 0.32, with a median of 0.46.
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. CRMT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that America's CarMart is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRMT feels like a great value stock at the moment.