Is Columbus McKinnon (CMCO) a Great Value Stock Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Columbus McKinnon (CMCO). CMCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.47, while its industry has an average P/E of 16.58. Over the last 12 months, CMCO's Forward P/E has been as high as 14.44 and as low as 6.39, with a median of 12.05.
Investors should also note that CMCO holds a PEG ratio of 0.56. 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. CMCO's industry currently sports an average PEG of 1.66. CMCO's PEG has been as high as 1.34 and as low as 0.56, with a median of 1.05, all within the past year.
We should also highlight that CMCO has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.98. CMCO's P/B has been as high as 2.27 and as low as 0.97, with a median of 1.94, over the past year.
Finally, we should also recognize that CMCO has a P/CF ratio of 4.71. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.96. Over the past 52 weeks, CMCO's P/CF has been as high as 12.78 and as low as 4.64, with a median of 10.42.
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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