Yahoo Finance Is Charles River Associates (CRAI) Stock Undervalued Right Now?
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.
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 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.
One company to watch right now is Charles River Associates (CRAI). CRAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 23.31 right now. For comparison, its industry sports an average P/E of 25.84. Over the past year, CRAI's Forward P/E has been as high as 25.24 and as low as 13.70, with a median of 17.88.
CRAI is also sporting a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRAI's industry currently sports an average PEG of 2.70. CRAI's PEG has been as high as 1.92 and as low as 1.05, with a median of 1.38, all within the past year.
Another valuation metric that we should highlight is CRAI's P/B ratio of 4.67. 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. CRAI's current P/B looks attractive when compared to its industry's average P/B of 6.37. Within the past 52 weeks, CRAI's P/B has been as high as 4.94 and as low as 2.81, with a median of 3.52.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRAI has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.08.
Finally, investors should note that CRAI has a P/CF ratio of 15.61. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.55. Within the past 12 months, CRAI's P/CF has been as high as 16.52 and as low as 9.61, with a median of 11.42.
Another great Consulting Services stock you could consider is Huron Consulting Group (HURN), which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Huron Consulting Group holds a P/B ratio of 3.14 and its industry's price-to-book ratio is 6.37. HURN's P/B has been as high as 3.78, as low as 2.59, with a median of 3.41 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Charles River Associates and Huron Consulting Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRAI and HURN feels like a great value stock at the moment.
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Charles River Associates (CRAI) : Free Stock Analysis Report
Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report
