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Are Investors Undervaluing Columbus McKinnon (CMCO) 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.

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.

Columbus McKinnon (CMCO - Free Report) is a stock many investors are watching right now. CMCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.06 right now. For comparison, its industry sports an average P/E of 12.68. CMCO's Forward P/E has been as high as 14.16 and as low as 9.88, with a median of 11.89, all within the past year.

Another notable valuation metric for CMCO is its P/B ratio of 1.20. 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 1.55. Over the past 12 months, CMCO's P/B has been as high as 1.45 and as low as 1.03, with a median of 1.24.

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


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