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Is Ameresco (AMRC) Stock Undervalued Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Ameresco (AMRC - Free Report) is a stock many investors are watching right now. AMRC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.70, which compares to its industry's average of 22.30. Over the past 52 weeks, AMRC's Forward P/E has been as high as 24.71 and as low as 10.26, with a median of 17.47.

Investors will also notice that AMRC has a PEG ratio of 0.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMRC's industry has an average PEG of 1.50 right now. Over the last 12 months, AMRC's PEG has been as high as 0.99 and as low as 0.46, with a median of 0.70.

Finally, our model also underscores that AMRC has a P/CF ratio of 8.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AMRC's P/CF compares to its industry's average P/CF of 8.72. AMRC's P/CF has been as high as 15.14 and as low as 7.25, with a median of 10.60, all within the past year.

These are just a handful of the figures considered in Ameresco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMRC is an impressive value stock right now.


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