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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CRH Medical . CRHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.08, which compares to its industry's average of 33.57. Over the past year, CRHM's Forward P/E has been as high as 112.36 and as low as 10.75, with a median of 36.87.
Another notable valuation metric for CRHM is its P/B ratio of 2.03. 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 4.11. Over the past 12 months, CRHM's P/B has been as high as 2.07 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 2.1. This compares to its industry's average P/S of 3.37.
Finally, our model also underscores that CRHM has a P/CF ratio of 6.13. 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. CRHM's current P/CF looks attractive when compared to its industry's average P/CF of 21.52. Within the past 12 months, CRHM's P/CF has been as high as 6.96 and as low as 5.08, with a median of 5.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CRH Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRHM feels like a great value stock at the moment.
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Are Investors Undervaluing CRH Medical (CRHM) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CRH Medical . CRHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.08, which compares to its industry's average of 33.57. Over the past year, CRHM's Forward P/E has been as high as 112.36 and as low as 10.75, with a median of 36.87.
Another notable valuation metric for CRHM is its P/B ratio of 2.03. 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 4.11. Over the past 12 months, CRHM's P/B has been as high as 2.07 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 2.1. This compares to its industry's average P/S of 3.37.
Finally, our model also underscores that CRHM has a P/CF ratio of 6.13. 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. CRHM's current P/CF looks attractive when compared to its industry's average P/CF of 21.52. Within the past 12 months, CRHM's P/CF has been as high as 6.96 and as low as 5.08, with a median of 5.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CRH Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRHM feels like a great value stock at the moment.