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Are Investors Undervaluing Charah Solutions, Inc. (CHRA) 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Charah Solutions, Inc. (CHRA - Free Report) is a stock many investors are watching right now. CHRA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.53. This compares to its industry's average Forward P/E of 15.59. Over the past 52 weeks, CHRA's Forward P/E has been as high as 715.40 and as low as -1,275.91, with a median of 9.81.

Another valuation metric that we should highlight is CHRA's P/B ratio of 0.94. The P/B ratio pits a stock's market value against 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 1.67. CHRA's P/B has been as high as 2.45 and as low as 0.75, with a median of 1.17, over the past year.

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


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