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Should Value Investors Buy Evercore (EVR) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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.

Evercore (EVR - Free Report) is a stock many investors are watching right now. EVR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

EVR is also sporting a PEG ratio of 0.72. 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. EVR's industry currently sports an average PEG of 0.74. EVR's PEG has been as high as 0.94 and as low as 0.44, with a median of 0.72, all within the past year.

Finally, investors should note that EVR has a P/CF ratio of 10.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EVR's current P/CF looks attractive when compared to its industry's average P/CF of 19.06. Over the past 52 weeks, EVR's P/CF has been as high as 30.48 and as low as 7.83, with a median of 20.02.

Value investors will likely look at more than just these metrics, but the above data helps show that Evercore is likely undervalued currently. And when considering the strength of its earnings outlook, EVR sticks out at as one of the market's strongest value stocks.


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