Back to top

Image: Bigstock

Are Investors Undervaluing CRA International (CRAI) Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

CRA International (CRAI - Free Report) is a stock many investors are watching right now. CRAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.98. This compares to its industry's average Forward P/E of 25.70. Over the past 52 weeks, CRAI's Forward P/E has been as high as 19.48 and as low as 8.98, with a median of 15.24.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRAI has a P/S ratio of 0.39. This compares to its industry's average P/S of 1.03.

Finally, investors will want to recognize that CRAI has a P/CF ratio of 5.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.95. Over the past 52 weeks, CRAI's P/CF has been as high as 13.51 and as low as 5.83, with a median of 9.74.

These are only a few of the key metrics included in CRA International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CRAI looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Charles River Associates (CRAI) - free report >>

Published in