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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is J. Sainsbury (JSAIY - Free Report) . JSAIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.21. This compares to its industry's average Forward P/E of 20.22. JSAIY's Forward P/E has been as high as 22.01 and as low as 11.90, with a median of 13.18, all within the past year.
We also note that JSAIY holds a PEG ratio of 0.87. 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. JSAIY's PEG compares to its industry's average PEG of 2.55. Within the past year, JSAIY's PEG has been as high as 3.81 and as low as 0.79, with a median of 2.13.
Tesco (TSCDY - Free Report) may be another strong Retail - Supermarkets stock to add to your shortlist. TSCDY is a # 1 (Strong Buy) stock with a Value grade of A.
Tesco is trading at a forward earnings multiple of 13 at the moment, with a PEG ratio of 0.49. This compares to its industry's average P/E of 20.22 and average PEG ratio of 2.55.
Over the last 12 months, TSCDY's P/E has been as high as 18.18, as low as 9.73, with a median of 12.41, and its PEG ratio has been as high as 2.94, as low as 0.45, with a median of 0.49.
Furthermore, Tesco holds a P/B ratio of 1.69 and its industry's price-to-book ratio is 3.81. TSCDY's P/B has been as high as 1.97, as low as 1.43, with a median of 1.57 over the past 12 months.
These are just a handful of the figures considered in J. Sainsbury and Tesco'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 JSAIY and TSCDY is an impressive value stock right now.
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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is J. Sainsbury (JSAIY - Free Report) . JSAIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.21. This compares to its industry's average Forward P/E of 20.22. JSAIY's Forward P/E has been as high as 22.01 and as low as 11.90, with a median of 13.18, all within the past year.
We also note that JSAIY holds a PEG ratio of 0.87. 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. JSAIY's PEG compares to its industry's average PEG of 2.55. Within the past year, JSAIY's PEG has been as high as 3.81 and as low as 0.79, with a median of 2.13.
Tesco (TSCDY - Free Report) may be another strong Retail - Supermarkets stock to add to your shortlist. TSCDY is a # 1 (Strong Buy) stock with a Value grade of A.
Tesco is trading at a forward earnings multiple of 13 at the moment, with a PEG ratio of 0.49. This compares to its industry's average P/E of 20.22 and average PEG ratio of 2.55.
Over the last 12 months, TSCDY's P/E has been as high as 18.18, as low as 9.73, with a median of 12.41, and its PEG ratio has been as high as 2.94, as low as 0.45, with a median of 0.49.
Furthermore, Tesco holds a P/B ratio of 1.69 and its industry's price-to-book ratio is 3.81. TSCDY's P/B has been as high as 1.97, as low as 1.43, with a median of 1.57 over the past 12 months.
These are just a handful of the figures considered in J. Sainsbury and Tesco'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 JSAIY and TSCDY is an impressive value stock right now.