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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.
One company to watch right now is Kroger (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.58 right now. For comparison, its industry sports an average P/E of 22.09. KR's Forward P/E has been as high as 14.46 and as low as 10.99, with a median of 12.51, all within the past year.
Investors will also notice that KR has a PEG ratio of 1.87. 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 3.44. Over the last 12 months, KR's PEG has been as high as 2.83 and as low as 1.77, with a median of 2.33.
We should also highlight that KR has a P/B ratio of 2.56. 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. KR's current P/B looks attractive when compared to its industry's average P/B of 3.61. KR's P/B has been as high as 3.19 and as low as 2.45, with a median of 2.72, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KR has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.25.
Finally, investors will want to recognize that KR has a P/CF ratio of 4.25. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 11.29. Over the past 52 weeks, KR's P/CF has been as high as 5.64 and as low as 4.08, with a median of 4.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kroger is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR feels like a great value stock at the moment.
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Should Value Investors Buy Kroger (KR) Stock?
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.
One company to watch right now is Kroger (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.58 right now. For comparison, its industry sports an average P/E of 22.09. KR's Forward P/E has been as high as 14.46 and as low as 10.99, with a median of 12.51, all within the past year.
Investors will also notice that KR has a PEG ratio of 1.87. 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 3.44. Over the last 12 months, KR's PEG has been as high as 2.83 and as low as 1.77, with a median of 2.33.
We should also highlight that KR has a P/B ratio of 2.56. 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. KR's current P/B looks attractive when compared to its industry's average P/B of 3.61. KR's P/B has been as high as 3.19 and as low as 2.45, with a median of 2.72, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KR has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.25.
Finally, investors will want to recognize that KR has a P/CF ratio of 4.25. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 11.29. Over the past 52 weeks, KR's P/CF has been as high as 5.64 and as low as 4.08, with a median of 4.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kroger is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR feels like a great value stock at the moment.