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Is EmbraerEmpresa Brasileira de Aeronautica (ERJ) a Great Value Stock Right Now?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that ERJ holds a PEG ratio of 1.47. 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 PEG compares to its industry's average PEG of 2.66. Within the past year, ERJ's PEG has been as high as 8.70 and as low as -21.46, with a median of 2.54.
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. ERJ has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.42.
Finally, our model also underscores that ERJ has a P/CF ratio of 8.19. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.91. Over the past year, ERJ's P/CF has been as high as 35.07 and as low as 6.93, with a median of 15.44.
Value investors will likely look at more than just these metrics, but the above data helps show that EmbraerEmpresa Brasileira de Aeronautica is likely undervalued currently. And when considering the strength of its earnings outlook, ERJ sticks out at as one of the market's strongest value stocks.
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Is EmbraerEmpresa Brasileira de Aeronautica (ERJ) a Great Value Stock 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that ERJ holds a PEG ratio of 1.47. 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 PEG compares to its industry's average PEG of 2.66. Within the past year, ERJ's PEG has been as high as 8.70 and as low as -21.46, with a median of 2.54.
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. ERJ has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.42.
Finally, our model also underscores that ERJ has a P/CF ratio of 8.19. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.91. Over the past year, ERJ's P/CF has been as high as 35.07 and as low as 6.93, with a median of 15.44.
Value investors will likely look at more than just these metrics, but the above data helps show that EmbraerEmpresa Brasileira de Aeronautica is likely undervalued currently. And when considering the strength of its earnings outlook, ERJ sticks out at as one of the market's strongest value stocks.