Is Emcor Group (EME) a Great Value Stock 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 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.
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 is trading with P/E ratio of 8.72 right now. For comparison, its industry sports an average P/E of 13.79. Over the past 52 weeks, EME's Forward P/E has been as high as 15.86 and as low as 8.72, with a median of 14.68.
Investors should also note that EME holds a PEG ratio of 0.98. 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. EME's industry currently sports an average PEG of 1.72. Over the past 52 weeks, EME's PEG has been as high as 1.06 and as low as 0.91, with a median of 0.99.
Investors should also recognize that EME has a P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.80. Over the past year, EME's P/B has been as high as 2.73 and as low as 1.43, with a median of 2.48.
Finally, investors should note that EME has a P/CF ratio of 7.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8. EME's P/CF has been as high as 13.03 and as low as 7.13, with a median of 12.03, all within the past year.
These are just a handful of the figures considered in Emcor Group'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 EME is an impressive value stock right now.
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
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