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.
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.
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.
Cricut (CRCT) is a stock many investors are watching right now. CRCT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 28.22, while its industry has an average P/E of 29.00. Over the past 52 weeks, CRCT's Forward P/E has been as high as 33.55 and as low as 16.34, with a median of 21.42.
Investors should also recognize that CRCT has a P/B ratio of 4.61. 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. This stock's P/B looks solid versus its industry's average P/B of 7.96. CRCT's P/B has been as high as 4.96 and as low as 1.77, with a median of 2.70, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRCT has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.34.
These are only a few of the key metrics included in Cricut's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CRCT looks like an impressive value stock at the moment.
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Cricut, Inc. (CRCT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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