While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 stock to keep an eye on is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.81, which compares to its industry's average of 23.60. Over the past year, ERJ's Forward P/E has been as high as 72.57 and as low as 11.39, with a median of 14.76.
We also note that ERJ holds a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ERJ's industry currently sports an average PEG of 1.66. ERJ's PEG has been as high as 4.27 and as low as 0.67, with a median of 0.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ERJ has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that ERJ has a P/CF ratio of 11.70. 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. ERJ's P/CF compares to its industry's average P/CF of 44.07. Within the past 12 months, ERJ's P/CF has been as high as 12.25 and as low as 7.25, with a median of 9.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EmbraerEmpresa Brasileira de Aeronautica is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ERJ feels like a great value stock at the moment.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 stock to keep an eye on is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.81, which compares to its industry's average of 23.60. Over the past year, ERJ's Forward P/E has been as high as 72.57 and as low as 11.39, with a median of 14.76.
We also note that ERJ holds a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ERJ's industry currently sports an average PEG of 1.66. ERJ's PEG has been as high as 4.27 and as low as 0.67, with a median of 0.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ERJ has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that ERJ has a P/CF ratio of 11.70. 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. ERJ's P/CF compares to its industry's average P/CF of 44.07. Within the past 12 months, ERJ's P/CF has been as high as 12.25 and as low as 7.25, with a median of 9.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EmbraerEmpresa Brasileira de Aeronautica is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ERJ feels like a great value stock at the moment.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on ERJ - FREE