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Should Value Investors Buy EmbraerEmpresa Brasileira de Aeronautica (ERJ) Stock?
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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.56. This compares to its industry's average Forward P/E of 20.07. Over the past 52 weeks, ERJ's Forward P/E has been as high as 81.46 and as low as -49.52, with a median of 35.98.
Investors should also note that ERJ holds a PEG ratio of 0.74. 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 1.47. Within the past year, ERJ's PEG has been as high as 4.79 and as low as -2.91, with a median of 2.12.
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. ERJ has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.39.
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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Should Value Investors Buy EmbraerEmpresa Brasileira de Aeronautica (ERJ) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) . ERJ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.56. This compares to its industry's average Forward P/E of 20.07. Over the past 52 weeks, ERJ's Forward P/E has been as high as 81.46 and as low as -49.52, with a median of 35.98.
Investors should also note that ERJ holds a PEG ratio of 0.74. 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 1.47. Within the past year, ERJ's PEG has been as high as 4.79 and as low as -2.91, with a median of 2.12.
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. ERJ has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.39.
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.