We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing EmbraerEmpresa Brasileira de Aeronautica (ERJ) Right Now?
Read MoreHide Full Article
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 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.
EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) is a stock many investors are watching right now. ERJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.39, while its industry has an average P/E of 19.31. Over the past 52 weeks, ERJ's Forward P/E has been as high as 24.60 and as low as 10.45, with a median of 12.77.
ERJ is also sporting a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ERJ's PEG compares to its industry's average PEG of 1.68. Over the past 52 weeks, ERJ's PEG has been as high as 1.45 and as low as 0.61, with a median of 0.75.
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 0.51. This compares to its industry's average P/S of 1.11.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
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.
EmbraerEmpresa Brasileira de Aeronautica (ERJ - Free Report) is a stock many investors are watching right now. ERJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.39, while its industry has an average P/E of 19.31. Over the past 52 weeks, ERJ's Forward P/E has been as high as 24.60 and as low as 10.45, with a median of 12.77.
ERJ is also sporting a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ERJ's PEG compares to its industry's average PEG of 1.68. Over the past 52 weeks, ERJ's PEG has been as high as 1.45 and as low as 0.61, with a median of 0.75.
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 0.51. This compares to its industry's average P/S of 1.11.
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.