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Are These Retail-Wholesale Stocks Undervalued 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 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 company value investors might notice is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.07 right now. For comparison, its industry sports an average P/E of 19.85. Over the last 12 months, MAKSY's Forward P/E has been as high as 54.10 and as low as 8.07, with a median of 11.70.
Another notable valuation metric for MAKSY is its P/B ratio of 1.35. The P/B ratio pits a stock's market value against 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 3.69. MAKSY's P/B has been as high as 2.31 and as low as 1.13, with a median of 1.55, over the past year.
Tesco (TSCDY - Free Report) may be another strong Retail - Supermarkets stock to add to your shortlist. TSCDY is a # 2 (Buy) stock with a Value grade of A.
Shares of Tesco are currently trading at a forward earnings multiple of 11.62 and a PEG ratio of 0.35 compared to its industry's P/E and PEG ratios of 19.85 and 2.50, respectively.
Over the past year, TSCDY's P/E has been as high as 17.96, as low as 10.09, with a median of 12.41; its PEG ratio has been as high as 2.90, as low as 0.35, with a median of 0.19 during the same time period.
Additionally, Tesco has a P/B ratio of 1.50 while its industry's price-to-book ratio sits at 3.69. For TSCDY, this valuation metric has been as high as 1.73, as low as 1.44, with a median of 1.57 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marks and Spencer Group and Tesco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAKSY and TSCDY feels like a great value stock at the moment.
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Are These Retail-Wholesale Stocks Undervalued 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 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 company value investors might notice is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.07 right now. For comparison, its industry sports an average P/E of 19.85. Over the last 12 months, MAKSY's Forward P/E has been as high as 54.10 and as low as 8.07, with a median of 11.70.
Another notable valuation metric for MAKSY is its P/B ratio of 1.35. The P/B ratio pits a stock's market value against 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 3.69. MAKSY's P/B has been as high as 2.31 and as low as 1.13, with a median of 1.55, over the past year.
Tesco (TSCDY - Free Report) may be another strong Retail - Supermarkets stock to add to your shortlist. TSCDY is a # 2 (Buy) stock with a Value grade of A.
Shares of Tesco are currently trading at a forward earnings multiple of 11.62 and a PEG ratio of 0.35 compared to its industry's P/E and PEG ratios of 19.85 and 2.50, respectively.
Over the past year, TSCDY's P/E has been as high as 17.96, as low as 10.09, with a median of 12.41; its PEG ratio has been as high as 2.90, as low as 0.35, with a median of 0.19 during the same time period.
Additionally, Tesco has a P/B ratio of 1.50 while its industry's price-to-book ratio sits at 3.69. For TSCDY, this valuation metric has been as high as 1.73, as low as 1.44, with a median of 1.57 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marks and Spencer Group and Tesco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAKSY and TSCDY feels like a great value stock at the moment.