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Is Jeronimo Martins SGPS (JRONY) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Jeronimo Martins SGPS (JRONY - Free Report) . JRONY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 17.35, which compares to its industry's average of 20.09. Over the past 52 weeks, JRONY's Forward P/E has been as high as 24.83 and as low as 16.80, with a median of 20.28.

We also note that JRONY holds a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JRONY's industry currently sports an average PEG of 3.59. Within the past year, JRONY's PEG has been as high as 2.19 and as low as 1.17, with a median of 1.62.

Finally, our model also underscores that JRONY has a P/CF ratio of 9.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.89. 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 9.48.

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

Shares of Tesco are currently trading at a forward earnings multiple of 13.07 and a PEG ratio of 2.75 compared to its industry's P/E and PEG ratios of 20.09 and 3.59, respectively.

Over the last 12 months, TSCDY's P/E has been as high as 13.14, as low as 9.09, with a median of 11.54, and its PEG ratio has been as high as 4.15, as low as 0.32, with a median of 3.34.

Tesco sports a P/B ratio of 1.38 as well; this compares to its industry's price-to-book ratio of 3.83. In the past 52 weeks, TSCDY's P/B has been as high as 1.38, as low as 0.99, with a median of 1.20.

These are only a few of the key metrics included in Jeronimo Martins SGPS and Tesco strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, JRONY and TSCDY look like an impressive value stock at the moment.


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