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Is CRH Medical (CRHM) a Great Value Stock Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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.

One company to watch right now is CRH Medical (CRHM). CRHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that CRHM has a P/B ratio of 1.60. 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 stock's P/B looks solid versus its industry's average P/B of 3.24. Over the past 12 months, CRHM's P/B has been as high as 2.53 and as low as 1.47, with a median of 1.81.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRHM has a P/S ratio of 1.86. This compares to its industry's average P/S of 3.87.

Finally, we should also recognize that CRHM has a P/CF ratio of 5.96. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.84. Within the past 12 months, CRHM's P/CF has been as high as 9.20 and as low as 5.65, with a median of 6.76.

Value investors will likely look at more than just these metrics, but the above data helps show that CRH Medical is likely undervalued currently. And when considering the strength of its earnings outlook, CRHM sticks out at as one of the market's strongest value stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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