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Should Value Investors Buy Jeronimo Martins SGPS (JRONY) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Jeronimo Martins SGPS (JRONY - Free Report) is a stock many investors are watching right now. JRONY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.09, while its industry has an average P/E of 21.25. Over the last 12 months, JRONY's Forward P/E has been as high as 24.83 and as low as 17.02, with a median of 20.38.

Finally, investors will want to recognize that JRONY has a P/CF ratio of 9.81. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.63. Within the past 12 months, JRONY's P/CF has been as high as 10.93 and as low as 7.80, with a median of 9.43.

If you're looking for another solid Retail - Supermarkets value stock, take a look at The Kroger Co. (KR - Free Report) . KR is a # 2 (Buy) stock with a Value score of A.

Shares of The Kroger Co. currently holds a Forward P/E ratio of 10.58, and its PEG ratio is 1.73. In comparison, its industry sports average P/E and PEG ratios of 21.25 and 3.77.

Over the past year, KR's P/E has been as high as 16.61, as low as 10.15, with a median of 11.87; its PEG ratio has been as high as 1.98, as low as 0.87, with a median of 1.64 during the same time period.

Additionally, The Kroger Co. has a P/B ratio of 3.22 while its industry's price-to-book ratio sits at 3.69. For KR, this valuation metric has been as high as 4.81, as low as 3.13, with a median of 3.55 over the past year.

These are just a handful of the figures considered in Jeronimo Martins SGPS and The Kroger Co.'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 JRONY and KR is an impressive value stock right now.


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