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Should Value Investors Buy Evercore (EVR) Stock?

Zacks Equity Research

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Evercore (EVR). EVR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that EVR has a PEG ratio of 0.71. 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. EVR's industry currently sports an average PEG of 0.87. Within the past year, EVR's PEG has been as high as 0.95 and as low as 0.44, with a median of 0.74.

Finally, investors will want to recognize that EVR has a P/CF ratio of 10.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.37. EVR's P/CF has been as high as 30.48 and as low as 7.83, with a median of 21.31, all within the past year.

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


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