Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Crocs (CROX) is a stock many investors are watching right now. CROX is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.89. This compares to its industry's average Forward P/E of 15.79. Over the last 12 months, CROX's Forward P/E has been as high as 10.77 and as low as 5.62, with a median of 7.89.
Investors should also recognize that CROX has a P/B ratio of 3.17. 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. CROX's current P/B looks attractive when compared to its industry's average P/B of 6.95. CROX's P/B has been as high as 5.29 and as low as 2.52, with a median of 3.37, over the past year.
Finally, investors should note that CROX has a P/CF ratio of 14.42. 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 33.70. Over the past year, CROX's P/CF has been as high as 19.53 and as low as 4.86, with a median of 6.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Crocs is likely undervalued currently. And when considering the strength of its earnings outlook, CROX sticks out as one of the market's strongest value stocks.
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Crocs, Inc. (CROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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