Is Cricut (CRCT) Stock Undervalued Right Now?

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Cricut (CRCT). CRCT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

We should also highlight that CRCT has a P/B ratio of 4.7. 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 5.21. CRCT's P/B has been as high as 4.96 and as low as 1.77, with a median of 2.70, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRCT has a P/S ratio of 1.41. This compares to its industry's average P/S of 2.35.

If you're looking for another solid Technology Services value stock, take a look at MediaAlpha (MAX). MAX is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Additionally, MediaAlpha has a P/B ratio of -15.44 while its industry's price-to-book ratio sits at 5.21. For MAX, this valuation metric has been as high as -11.41, as low as -23.19, with a median of -14.57 over the past year.

These are only a few of the key metrics included in Cricut and MediaAlpha strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRCT and MAX look like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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