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Is Charah Solutions, Inc. (CHRA) Stock Undervalued 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 company to watch right now is Charah Solutions, Inc. (CHRA). CHRA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.12 right now. For comparison, its industry sports an average P/E of 12.16. Over the past year, CHRA's Forward P/E has been as high as 715.40 and as low as -1,275.91, with a median of 7.96.

Investors should also recognize that CHRA has a P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CHRA's current P/B looks attractive when compared to its industry's average P/B of 1.58. Over the past year, CHRA's P/B has been as high as 2.60 and as low as 0.75, with a median of 2.04.

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


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