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Is Evercore (EVR) Stock Undervalued Right Now?

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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.

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

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 Evercore (EVR - Free Report) . EVR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.09, which compares to its industry's average of 15.23. Over the past year, EVR's Forward P/E has been as high as 14.44 and as low as 10.30, with a median of 12.41.

Finally, we should also recognize that EVR has a P/CF ratio of 10.45. 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. EVR's current P/CF looks attractive when compared to its industry's average P/CF of 18.25. Within the past 12 months, EVR's P/CF has been as high as 19.33 and as low as 9.51, with a median of 12.92.

These are only a few of the key metrics included in Evercore'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, EVR looks like an impressive value stock at the moment.


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