Should Value Investors Buy Cross Country Healthcare (CCRN) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Cross Country Healthcare (CCRN). CCRN 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 5.25, while its industry has an average P/E of 11.68. Over the past year, CCRN's Forward P/E has been as high as 17.77 and as low as 3.93, with a median of 8.22.
Investors should also note that CCRN holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CCRN's PEG compares to its industry's average PEG of 1.60. Within the past year, CCRN's PEG has been as high as 1.84 and as low as 0.45, with a median of 0.88.
Another valuation metric that we should highlight is CCRN's P/B ratio of 2.34. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CCRN's current P/B looks attractive when compared to its industry's average P/B of 2.43. CCRN's P/B has been as high as 4.86 and as low as 1.68, with a median of 2.50, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCRN has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.38.
Finally, we should also recognize that CCRN has a P/CF ratio of 4.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.79. Over the past year, CCRN's P/CF has been as high as 15.24 and as low as 3.23, with a median of 4.55.
Investors could also keep in mind Randstad Holding (RANJY), an Staffing Firms stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Additionally, Randstad Holding has a P/B ratio of 2.36 while its industry's price-to-book ratio sits at 2.43. For RANJY, this valuation metric has been as high as 2.38, as low as 1.61, with a median of 2.05 over the past year.
These are only a few of the key metrics included in Cross Country Healthcare and Randstad Holding strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CCRN and RANJY look like an impressive value stock at the moment.
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Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
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