Should Value Investors Buy Columbus McKinnon (CMCO) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Columbus McKinnon (CMCO). CMCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.21, while its industry has an average P/E of 12.35. Over the past 52 weeks, CMCO's Forward P/E has been as high as 14.16 and as low as 9.88, with a median of 11.89.
Another valuation metric that we should highlight is CMCO's P/B ratio of 1.21. 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 1.50. Over the past year, CMCO's P/B has been as high as 1.45 and as low as 1.03, with a median of 1.24.
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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Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report
