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Is Cambridge (CATC) a Great Value Stock Right Now?

Zacks Equity Research

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Cambridge (CATC). CATC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.18, which compares to its industry's average of 11.96. Over the last 12 months, CATC's Forward P/E has been as high as 12.16 and as low as 7.17, with a median of 9.10.

Another valuation metric that we should highlight is CATC's P/B ratio of 0.98. 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. CATC's current P/B looks attractive when compared to its industry's average P/B of 1.47. Within the past 52 weeks, CATC's P/B has been as high as 2.05 and as low as 0.83, with a median of 1.38.

Finally, investors will want to recognize that CATC has a P/CF ratio of 10.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.86. Within the past 12 months, CATC's P/CF has been as high as 15.79 and as low as 8.99, with a median of 14.18.

These are just a handful of the figures considered in Cambridge's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CATC is an impressive value stock right now.


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