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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Jeronimo Martins SGPS (JRONY - Free Report) . JRONY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors will also notice that JRONY has a PEG ratio of 2.22. 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. JRONY's PEG compares to its industry's average PEG of 2.65. Within the past year, JRONY's PEG has been as high as 2.65 and as low as 1.82, with a median of 2.10.

Finally, investors will want to recognize that JRONY has a P/CF ratio of 10.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JRONY's current P/CF looks attractive when compared to its industry's average P/CF of 13.19. Within the past 12 months, JRONY's P/CF has been as high as 11.19 and as low as 7.94, with a median of 9.69.

Another great Retail - Supermarkets stock you could consider is Marks and Spencer Group (MAKSY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Marks and Spencer Group is currently trading with a Forward P/E ratio of 12.82 while its PEG ratio sits at 0.19. Both of the company's metrics compare favorably to its industry's average P/E of 21.02 and average PEG ratio of 2.65.

MAKSY's price-to-earnings ratio has been as high as 54.10 and as low as 9.09, with a median of 11.78, while its PEG ratio has been as high as 0.21 and as low as 0.15, with a median of 0.19, all within the past year.

Additionally, Marks and Spencer Group has a P/B ratio of 2.13 while its industry's price-to-book ratio sits at 3.77. For MAKSY, this valuation metric has been as high as 2.16, as low as 0.98, with a median of 1.43 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Jeronimo Martins SGPS and Marks and Spencer Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRONY and MAKSY feels like a great value stock at the moment.


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Marks and Spencer Group PLC (MAKSY) - free report >>

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