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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Kroger (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 is trading with a P/E ratio of 13.47, which compares to its industry's average of 22.43. KR's Forward P/E has been as high as 14.46 and as low as 10.49, with a median of 12.46, all within the past year.
KR is also sporting a PEG ratio of 2.45. 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. KR's PEG compares to its industry's average PEG of 3.50. Over the last 12 months, KR's PEG has been as high as 2.83 and as low as 1.63, with a median of 2.32.
Investors should also recognize that KR has a P/B ratio of 3.01. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.61. Over the past 12 months, KR's P/B has been as high as 3.19 and as low as 2.20, with a median of 2.70.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KR has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.24.
Finally, investors should note that KR has a P/CF ratio of 5.24. 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. KR's current P/CF looks attractive when compared to its industry's average P/CF of 11.29. Within the past 12 months, KR's P/CF has been as high as 5.64 and as low as 4.25, with a median of 4.96.
These are just a handful of the figures considered in Kroger'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 KR is an impressive value stock right now.
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Is Kroger (KR) a Great Value Stock 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Kroger (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 is trading with a P/E ratio of 13.47, which compares to its industry's average of 22.43. KR's Forward P/E has been as high as 14.46 and as low as 10.49, with a median of 12.46, all within the past year.
KR is also sporting a PEG ratio of 2.45. 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. KR's PEG compares to its industry's average PEG of 3.50. Over the last 12 months, KR's PEG has been as high as 2.83 and as low as 1.63, with a median of 2.32.
Investors should also recognize that KR has a P/B ratio of 3.01. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.61. Over the past 12 months, KR's P/B has been as high as 3.19 and as low as 2.20, with a median of 2.70.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KR has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.24.
Finally, investors should note that KR has a P/CF ratio of 5.24. 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. KR's current P/CF looks attractive when compared to its industry's average P/CF of 11.29. Within the past 12 months, KR's P/CF has been as high as 5.64 and as low as 4.25, with a median of 4.96.
These are just a handful of the figures considered in Kroger'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 KR is an impressive value stock right now.