Should Value Investors Buy CareCloud (CCLD) Stock?
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.
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.
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 stock to keep an eye on is CareCloud (CCLD). CCLD is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
We should also highlight that CCLD has a P/B ratio of 2.64. The P/B ratio pits a stock's market value against 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 7.61. Over the past 12 months, CCLD's P/B has been as high as 2.90 and as low as 0.48, with a median of 1.27.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCLD has a P/S ratio of 1.16. This compares to its industry's average P/S of 2.6.
Value investors will likely look at more than just these metrics, but the above data helps show that CareCloud is likely undervalued currently. And when considering the strength of its earnings outlook, CCLD sticks out as one of the market's strongest value stocks.
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CareCloud, Inc. (CCLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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