Are Investors Undervaluing CRH (CRH) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is CRH (CRH). CRH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.10 right now. For comparison, its industry sports an average P/E of 14.20. Over the past 52 weeks, CRH's Forward P/E has been as high as 14.56 and as low as 9.20, with a median of 12.11.
Investors will also notice that CRH has a PEG ratio of 0.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CRH's PEG compares to its industry's average PEG of 1.14. CRH's PEG has been as high as 5.50 and as low as 0.75, with a median of 3.50, all within the past year.
We should also highlight that CRH has a P/B ratio of 1.95. 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. This stock's P/B looks solid versus its industry's average P/B of 4.14. CRH's P/B has been as high as 2.06 and as low as 1.12, with a median of 1.58, over the past year.
These are just a handful of the figures considered in CRH'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 CRH is an impressive value stock right now.
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CRH PLC (CRH) : Free Stock Analysis Report
