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Is The Kroger Co. (KR) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
The Kroger Co. (KR - Free Report) is a stock many investors are watching right now. KR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.65, while its industry has an average P/E of 21.18. Over the past year, KR's Forward P/E has been as high as 16.61 and as low as 10.15, with a median of 12.32.
We also note that KR holds a PEG ratio of 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KR's PEG compares to its industry's average PEG of 3.76. Within the past year, KR's PEG has been as high as 1.98 and as low as 0.87, with a median of 1.25.
Another notable valuation metric for KR is its P/B ratio of 3.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.68. Within the past 52 weeks, KR's P/B has been as high as 4.81 and as low as 3.13, with a median of 3.61.
Finally, investors will want to recognize that KR has a P/CF ratio of 5.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.67. KR's P/CF has been as high as 9.01 and as low as 5.14, with a median of 6.23, all within the past year.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Tesco (TSCDY - Free Report) . TSCDY is a # 2 (Buy) stock with a Value score of A.
Tesco is currently trading with a Forward P/E ratio of 11.60 while its PEG ratio sits at 3.72. Both of the company's metrics compare favorably to its industry's average P/E of 21.18 and average PEG ratio of 3.76.
Over the past year, TSCDY's P/E has been as high as 13.30, as low as 9.09, with a median of 11.52; its PEG ratio has been as high as 4.11, as low as 0.32, with a median of 1.25 during the same time period.
Furthermore, Tesco holds a P/B ratio of 1.21 and its industry's price-to-book ratio is 3.68. TSCDY's P/B has been as high as 1.73, as low as 0.99, with a median of 1.21 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Kroger Co. and Tesco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR and TSCDY feels like a great value stock at the moment.
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Is The Kroger Co. (KR) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
The Kroger Co. (KR - Free Report) is a stock many investors are watching right now. KR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.65, while its industry has an average P/E of 21.18. Over the past year, KR's Forward P/E has been as high as 16.61 and as low as 10.15, with a median of 12.32.
We also note that KR holds a PEG ratio of 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KR's PEG compares to its industry's average PEG of 3.76. Within the past year, KR's PEG has been as high as 1.98 and as low as 0.87, with a median of 1.25.
Another notable valuation metric for KR is its P/B ratio of 3.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.68. Within the past 52 weeks, KR's P/B has been as high as 4.81 and as low as 3.13, with a median of 3.61.
Finally, investors will want to recognize that KR has a P/CF ratio of 5.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.67. KR's P/CF has been as high as 9.01 and as low as 5.14, with a median of 6.23, all within the past year.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Tesco (TSCDY - Free Report) . TSCDY is a # 2 (Buy) stock with a Value score of A.
Tesco is currently trading with a Forward P/E ratio of 11.60 while its PEG ratio sits at 3.72. Both of the company's metrics compare favorably to its industry's average P/E of 21.18 and average PEG ratio of 3.76.
Over the past year, TSCDY's P/E has been as high as 13.30, as low as 9.09, with a median of 11.52; its PEG ratio has been as high as 4.11, as low as 0.32, with a median of 1.25 during the same time period.
Furthermore, Tesco holds a P/B ratio of 1.21 and its industry's price-to-book ratio is 3.68. TSCDY's P/B has been as high as 1.73, as low as 0.99, with a median of 1.21 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Kroger Co. and Tesco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR and TSCDY feels like a great value stock at the moment.