Yahoo Finance Are Investors Undervaluing Columbus McKinnon (CMCO) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Columbus McKinnon (CMCO). CMCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.01. This compares to its industry's average Forward P/E of 13.65. Over the past year, CMCO's Forward P/E has been as high as 13.27 and as low as 8.03, with a median of 10.81.
We should also highlight that CMCO has a P/B ratio of 1.29. 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 1.64. Over the past 12 months, CMCO's P/B has been as high as 1.38 and as low as 0.89, with a median of 1.19.
Finally, we should also recognize that CMCO has a P/CF ratio of 11.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.42. Within the past 12 months, CMCO's P/CF has been as high as 14.09 and as low as 8.03, with a median of 10.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Columbus McKinnon is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMCO feels like a great value stock at the moment.
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Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report
