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Are Investors Undervaluing Emcor Group (EME) Right Now?
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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 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 stock to keep an eye on is Emcor Group (EME - Free Report) . EME is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that EME has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EME's industry currently sports an average PEG of 1.07. Within the past year, EME's PEG has been as high as 1.47 and as low as 0.82, with a median of 1.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EME has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.47.
These are only a few of the key metrics included in Emcor Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EME looks like an impressive value stock at the moment.
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Are Investors Undervaluing Emcor Group (EME) 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 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 stock to keep an eye on is Emcor Group (EME - Free Report) . EME is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that EME has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EME's industry currently sports an average PEG of 1.07. Within the past year, EME's PEG has been as high as 1.47 and as low as 0.82, with a median of 1.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EME has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.47.
These are only a few of the key metrics included in Emcor Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EME looks like an impressive value stock at the moment.