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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Columbus McKinnon (CMCO - Free Report) is a stock many investors are watching right now. CMCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.15, while its industry has an average P/E of 11.63. Over the past 52 weeks, CMCO's Forward P/E has been as high as 18.79 and as low as 10.71, with a median of 15.
Finally, investors should note that CMCO has a P/CF ratio of 13.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.20. Over the past year, CMCO's P/CF has been as high as 22.36 and as low as 11.95, with a median of 16.97.
These are just a handful of the figures considered in Columbus McKinnon'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 CMCO is an impressive value stock right now.