Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CRH Medical . CRHM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for CRHM is its P/B ratio of 1.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.90. Over the past year, CRHM's P/B has been as high as 2.03 and as low as 1.37, with a median of 1.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CRHM has a P/S ratio of 1.81. This compares to its industry's average P/S of 3.37.
Finally, investors should note that CRHM has a P/CF ratio of 5.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.53. Over the past 52 weeks, CRHM's P/CF has been as high as 7.65 and as low as 5.08, with a median of 5.78.
Value investors will likely look at more than just these metrics, but the above data helps show that CRH Medical is likely undervalued currently. And when considering the strength of its earnings outlook, CRHM sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Are Investors Undervaluing CRH Medical (CRHM) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CRH Medical . CRHM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for CRHM is its P/B ratio of 1.96. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.90. Over the past year, CRHM's P/B has been as high as 2.03 and as low as 1.37, with a median of 1.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CRHM has a P/S ratio of 1.81. This compares to its industry's average P/S of 3.37.
Finally, investors should note that CRHM has a P/CF ratio of 5.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.53. Over the past 52 weeks, CRHM's P/CF has been as high as 7.65 and as low as 5.08, with a median of 5.78.
Value investors will likely look at more than just these metrics, but the above data helps show that CRH Medical is likely undervalued currently. And when considering the strength of its earnings outlook, CRHM sticks out at as one of the market's strongest value stocks.