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Are Investors Undervaluing Crawford United Corporation (CRAWA) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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.

One company to watch right now is Crawford United Corporation (CRAWA - Free Report) . CRAWA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 8.78 right now. For comparison, its industry sports an average P/E of 17.59. Over the past year, CRAWA's Forward P/E has been as high as 11.90 and as low as 6.61, with a median of 8.40.

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. CRAWA has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.72.

Finally, we should also recognize that CRAWA has a P/CF ratio of 5.45. 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. CRAWA's P/CF compares to its industry's average P/CF of 18.37. Within the past 12 months, CRAWA's P/CF has been as high as 12.33 and as low as 3.92, with a median of 7.17.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Crawford United Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRAWA feels like a great value stock at the moment.


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