Are Investors Undervaluing Crawford & Company (CRD.B) Right Now?

In this article:

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Crawford & Company (CRD.B) is a stock many investors are watching right now. CRD.B is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.66, which compares to its industry's average of 18.68. Over the past year, CRD.B's Forward P/E has been as high as 12.22 and as low as 6.51, with a median of 7.63.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRD.B has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.06.

If you're looking for another solid Business - Services value stock, take a look at Viad Corp (VVI). VVI is a # 1 (Strong Buy) stock with a Value score of A.

Shares of Viad Corp currently holds a Forward P/E ratio of 55.43, and its PEG ratio is 3.70. In comparison, its industry sports average P/E and PEG ratios of 18.68 and 1.37.

VVI's price-to-earnings ratio has been as high as 60.33 and as low as -83.69, with a median of 27.50, while its PEG ratio has been as high as 4.02 and as low as -5.58, with a median of 1.83, all within the past year.

Furthermore, Viad Corp holds a P/B ratio of 4.98 and its industry's price-to-book ratio is 3.15. VVI's P/B has been as high as 7.22, as low as 3.40, with a median of 5.51 over the past 12 months.

These are just a handful of the figures considered in Crawford & Company and Viad Corp'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 CRD.B and VVI is an impressive value stock right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Crawford & Company (CRD.B) : Free Stock Analysis Report

Viad Corp (VVI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement