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Should Value Investors Buy Emcor Group (EME) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Emcor Group (EME - Free Report) . EME is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors will also notice that EME has a PEG ratio of 0.94. 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. EME's industry currently sports an average PEG of 1.25. Within the past year, EME's PEG has been as high as 1.47 and as low as 0.85, with a median of 1.10.
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. EME has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Emcor Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EME feels like a great value stock at the moment.
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Should Value Investors Buy Emcor Group (EME) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Emcor Group (EME - Free Report) . EME is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors will also notice that EME has a PEG ratio of 0.94. 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. EME's industry currently sports an average PEG of 1.25. Within the past year, EME's PEG has been as high as 1.47 and as low as 0.85, with a median of 1.10.
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. EME has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Emcor Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EME feels like a great value stock at the moment.