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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 EmbraerEmpresa Brasileira de Aeronautica . ERJ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 20.20, while its industry has an average P/E of 20.35. ERJ's Forward P/E has been as high as 147.84 and as low as -364.85, with a median of 43.18, all within the past year.
We also note that ERJ holds a PEG ratio of 1.19. 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. ERJ's PEG compares to its industry's average PEG of 2.86. Over the last 12 months, 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.53. This compares to its industry's average P/S of 1.43.
Finally, investors will want to recognize that ERJ has a P/CF ratio of 11.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 45.36. Over the past 52 weeks, ERJ's P/CF has been as high as 35.04 and as low as 7.25, with a median of 15.13.
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.
View the Zacks #1 Rank List
Image: Bigstock
Is EmbraerEmpresa Brasileira de Aeronautica (ERJ) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 EmbraerEmpresa Brasileira de Aeronautica . ERJ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 20.20, while its industry has an average P/E of 20.35. ERJ's Forward P/E has been as high as 147.84 and as low as -364.85, with a median of 43.18, all within the past year.
We also note that ERJ holds a PEG ratio of 1.19. 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. ERJ's PEG compares to its industry's average PEG of 2.86. Over the last 12 months, 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.53. This compares to its industry's average P/S of 1.43.
Finally, investors will want to recognize that ERJ has a P/CF ratio of 11.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 45.36. Over the past 52 weeks, ERJ's P/CF has been as high as 35.04 and as low as 7.25, with a median of 15.13.
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.