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Is Columbus McKinnon (CMCO) a Great Value Stock Right Now?

Zacks Equity Research
Abbott (ABT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 value investors might notice is Columbus McKinnon (CMCO). CMCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.97. This compares to its industry's average Forward P/E of 12.04. CMCO's Forward P/E has been as high as 18.79 and as low as 10.71, with a median of 15.09, all within the past year.

Finally, our model also underscores that CMCO has a P/CF ratio of 14.07. 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 15.60. Over the past 52 weeks, CMCO's P/CF has been as high as 22.36 and as low as 11.95, with a median of 17.09.

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


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