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Is Carpenter Technology (CRS) a Great Value Stock Right Now?

Zacks Equity Research

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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Carpenter Technology (CRS) is a stock many investors are watching right now. CRS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.12 right now. For comparison, its industry sports an average P/E of 12.88. CRS's Forward P/E has been as high as 22.57 and as low as 9.31, with a median of 13.28, all within the past year.

We should also highlight that CRS has a P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.63. Over the past 12 months, CRS's P/B has been as high as 2.07 and as low as 1.07, with a median of 1.51.

Finally, we should also recognize that CRS has a P/CF ratio of 7.95. 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 9.85. Over the past 52 weeks, CRS's P/CF has been as high as 10.03 and as low as 5.15, with a median of 8.54.

These are only a few of the key metrics included in Carpenter Technology'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, CRS looks like an impressive value stock at the moment.


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