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Are Investors Undervaluing Marks and Spencer Group (MAKSY) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Marks and Spencer Group (MAKSY - Free Report) is a stock many investors are watching right now. MAKSY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.53, while its industry has an average P/E of 21.02. Over the past year, MAKSY's Forward P/E has been as high as 13.45 and as low as 6.01, with a median of 10.01.

We also note that MAKSY holds a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MAKSY's PEG compares to its industry's average PEG of 3.75. Within the past year, MAKSY's PEG has been as high as 1.43 and as low as 0.44, with a median of 0.51.

Another great Retail - Supermarkets stock you could consider is Tesco (TSCDY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Tesco is trading at a forward earnings multiple of 11.86 at the moment, with a PEG ratio of 2.53. This compares to its industry's average P/E of 21.02 and average PEG ratio of 3.75.

TSCDY's price-to-earnings ratio has been as high as 13.89 and as low as 9.09, with a median of 11.85, while its PEG ratio has been as high as 4.15 and as low as 0.32, with a median of 3.34, all within the past year.

Tesco sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 3.94. 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 1.23.

These are only a few of the key metrics included in Marks and Spencer Group 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, MAKSY and TSCDY look like an impressive value stock at the moment.


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