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Is Evercore (EVR) Stock Undervalued Right Now?

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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.

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 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 to watch right now is Evercore (EVR - Free Report) . EVR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.06, which compares to its industry's average of 15.27. 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 12.40.

Finally, investors will want to recognize that EVR has a P/CF ratio of 10.41. 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 P/CF compares to its industry's average P/CF of 18.22. 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 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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