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Are Investors Undervaluing Evercore (EVR) Right Now?
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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 Evercore (EVR - Free Report) . EVR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.78, while its industry has an average P/E of 12.04. Over the last 12 months, EVR's Forward P/E has been as high as 11.71 and as low as 6.55, with a median of 8.79.
Another notable valuation metric for EVR is its P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EVR's current P/B looks attractive when compared to its industry's average P/B of 2.78. Over the past 12 months, EVR's P/B has been as high as 3.56 and as low as 2.01, with a median of 2.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EVR has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.94.
Finally, our model also underscores that EVR has a P/CF ratio of 6.53. 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 16.20. Over the past 52 weeks, EVR's P/CF has been as high as 8.49 and as low as 4.47, with a median of 5.90.
Investors could also keep in mind Raymond James Financial (RJF - Free Report) , an Financial - Investment Bank stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Raymond James Financial holds a P/B ratio of 2.50 and its industry's price-to-book ratio is 2.78. RJF's P/B has been as high as 2.87, as low as 1.94, with a median of 2.42 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Evercore and Raymond James Financial are likely undervalued currently. And when considering the strength of its earnings outlook, EVR and RJF sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Evercore (EVR) 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 Evercore (EVR - Free Report) . EVR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.78, while its industry has an average P/E of 12.04. Over the last 12 months, EVR's Forward P/E has been as high as 11.71 and as low as 6.55, with a median of 8.79.
Another notable valuation metric for EVR is its P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EVR's current P/B looks attractive when compared to its industry's average P/B of 2.78. Over the past 12 months, EVR's P/B has been as high as 3.56 and as low as 2.01, with a median of 2.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EVR has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.94.
Finally, our model also underscores that EVR has a P/CF ratio of 6.53. 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 16.20. Over the past 52 weeks, EVR's P/CF has been as high as 8.49 and as low as 4.47, with a median of 5.90.
Investors could also keep in mind Raymond James Financial (RJF - Free Report) , an Financial - Investment Bank stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Raymond James Financial holds a P/B ratio of 2.50 and its industry's price-to-book ratio is 2.78. RJF's P/B has been as high as 2.87, as low as 1.94, with a median of 2.42 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Evercore and Raymond James Financial are likely undervalued currently. And when considering the strength of its earnings outlook, EVR and RJF sticks out as one of the market's strongest value stocks.