Is Cricut (CRCT) Stock Undervalued 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 Cricut (CRCT). CRCT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 22.89, which compares to its industry's average of 24.46. CRCT's Forward P/E has been as high as 33.55 and as low as 16.34, with a median of 19.90, all within the past year.
Investors should also recognize that CRCT has a P/B ratio of 3.82. 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 attractive against its industry's average P/B of 8.07. Over the past 12 months, CRCT's P/B has been as high as 4.94 and as low as 1.77, with a median of 2.70.
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 1.65. This compares to its industry's average P/S of 2.16.
These are just a handful of the figures considered in Cricut's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRCT is an impressive value stock right now.
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Cricut, Inc. (CRCT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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