Are Investors Undervaluing Emcor Group (EME) Right Now?
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.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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). EME 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 9.36. This compares to its industry's average Forward P/E of 13.61. Over the past 52 weeks, EME's Forward P/E has been as high as 15.86 and as low as 8.02, with a median of 14.68.
Investors should also note that EME holds a PEG ratio of 0.98. 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. EME's industry currently sports an average PEG of 1.70. Over the last 12 months, EME's PEG has been as high as 1.06 and as low as 0.92, with a median of 0.99.
Investors should also recognize that EME has a P/B ratio of 1.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EME's current P/B looks attractive when compared to its industry's average P/B of 1.80. EME's P/B has been as high as 2.73 and as low as 1.32, with a median of 2.48, over the past year.
Finally, investors should note that EME has a P/CF ratio of 7.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8. Over the past 52 weeks, EME's P/CF has been as high as 13.03 and as low as 6.56, with a median of 12.03.
These are only a few of the key metrics included in Emcor Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EME looks like an impressive value stock at the moment.
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
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