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CRRFY vs. WMMVY: Which Stock Should Value Investors Buy Now?

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Investors interested in Retail - Supermarkets stocks are likely familiar with Carrefour SA (CRRFY - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Carrefour SA has a Zacks Rank of #2 (Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CRRFY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CRRFY currently has a forward P/E ratio of 9.77, while WMMVY has a forward P/E of 29.73. We also note that CRRFY has a PEG ratio of 0.73. 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. WMMVY currently has a PEG ratio of 3.50.

Another notable valuation metric for CRRFY is its P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 7.72.

These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.

CRRFY stands above WMMVY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CRRFY is the superior value option right now.


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