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Are Investors Undervaluing EmbraerEmpresa Brasileira de Aeronautica (ERJ) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 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 15.75, which compares to its industry's average of 21.33. Over the past 52 weeks, ERJ's Forward P/E has been as high as 72.57 and as low as 11.39, with a median of 15.22.
Investors should also note that ERJ holds a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ERJ's industry has an average PEG of 1.51 right now. Within the past year, ERJ's PEG has been as high as 4.27 and as low as 0.67, with a median of 0.90.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ERJ has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that ERJ has a P/CF ratio of 11.55. 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. ERJ's P/CF compares to its industry's average P/CF of 45.58. Within the past 12 months, ERJ's P/CF has been as high as 14.87 and as low as 7.25, with a median of 9.38.
These are just a handful of the figures considered in EmbraerEmpresa Brasileira de Aeronautica's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ERJ is an impressive value stock right now.
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Are Investors Undervaluing EmbraerEmpresa Brasileira de Aeronautica (ERJ) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 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 15.75, which compares to its industry's average of 21.33. Over the past 52 weeks, ERJ's Forward P/E has been as high as 72.57 and as low as 11.39, with a median of 15.22.
Investors should also note that ERJ holds a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ERJ's industry has an average PEG of 1.51 right now. Within the past year, ERJ's PEG has been as high as 4.27 and as low as 0.67, with a median of 0.90.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ERJ has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that ERJ has a P/CF ratio of 11.55. 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. ERJ's P/CF compares to its industry's average P/CF of 45.58. Within the past 12 months, ERJ's P/CF has been as high as 14.87 and as low as 7.25, with a median of 9.38.
These are just a handful of the figures considered in EmbraerEmpresa Brasileira de Aeronautica's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ERJ is an impressive value stock right now.