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Are Investors Undervaluing Emerald Expositions Events, Inc. (EEX) Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company value investors might notice is Emerald Expositions Events, Inc. (EEX). EEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.30 right now. For comparison, its industry sports an average P/E of 16.22. Over the past 52 weeks, EEX's Forward P/E has been as high as 12.58 and as low as 9.33, with a median of 11.07.

Investors should also note that EEX holds a PEG ratio of 1.25. 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. EEX's industry has an average PEG of 1.38 right now. Over the past 52 weeks, EEX's PEG has been as high as 1.44 and as low as 1.07, with a median of 1.26.

Finally, investors should note that EEX has a P/CF ratio of 4.98. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.19. Within the past 12 months, EEX's P/CF has been as high as 8.72 and as low as 4.98, with a median of 6.43.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Emerald Expositions Events, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EEX feels like a great value stock at the moment.


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