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Is Jeronimo Martins SGPS (JRONY) Stock Undervalued 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Jeronimo Martins SGPS (JRONY - Free Report) . JRONY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 19.48, which compares to its industry's average of 21.40. Over the last 12 months, JRONY's Forward P/E has been as high as 23.11 and as low as 16.80, with a median of 19.81.

Investors will also notice that JRONY has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JRONY's industry has an average PEG of 3.82 right now. JRONY's PEG has been as high as 1.85 and as low as 1.17, with a median of 1.46, all within the past year.

Finally, our model also underscores that JRONY has a P/CF ratio of 10.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.32. Over the past 52 weeks, JRONY's P/CF has been as high as 11.23 and as low as 7.80, with a median of 9.59.

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.

Tesco is currently trading with a Forward P/E ratio of 12.14 while its PEG ratio sits at 2.59. Both of the company's metrics compare favorably to its industry's average P/E of 21.40 and average PEG ratio of 3.82.

TSCDY's Forward P/E has been as high as 13.89 and as low as 9.09, with a median of 11.76. During the same time period, 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 1.47 as well; this compares to its industry's price-to-book ratio of 3.99. In the past 52 weeks, TSCDY's P/B has been as high as 1.58, as low as 0.99, with a median of 1.21.

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


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