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Are Investors Undervaluing Tesco (TSCDY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Tesco (TSCDY - Free Report) . TSCDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.17, while its industry has an average P/E of 22.03. Over the past year, TSCDY's Forward P/E has been as high as 13.89 and as low as 9.09, with a median of 11.90.
Investors will also notice that TSCDY has a PEG ratio of 2.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSCDY's industry has an average PEG of 3.56 right now. TSCDY's PEG has been as high as 4.15 and as low as 2.32, with a median of 2.85, all within the past year.
Investors should also recognize that TSCDY has a P/B ratio of 1.57. 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. This stock's P/B looks solid versus its industry's average P/B of 4.56. Within the past 52 weeks, TSCDY's P/B has been as high as 1.76 and as low as 0.99, with a median of 1.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TSCDY feels like a great value stock at the moment.
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Are Investors Undervaluing Tesco (TSCDY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Tesco (TSCDY - Free Report) . TSCDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.17, while its industry has an average P/E of 22.03. Over the past year, TSCDY's Forward P/E has been as high as 13.89 and as low as 9.09, with a median of 11.90.
Investors will also notice that TSCDY has a PEG ratio of 2.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSCDY's industry has an average PEG of 3.56 right now. TSCDY's PEG has been as high as 4.15 and as low as 2.32, with a median of 2.85, all within the past year.
Investors should also recognize that TSCDY has a P/B ratio of 1.57. 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. This stock's P/B looks solid versus its industry's average P/B of 4.56. Within the past 52 weeks, TSCDY's P/B has been as high as 1.76 and as low as 0.99, with a median of 1.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TSCDY feels like a great value stock at the moment.