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Should Value Investors Buy Marks and Spencer Group (MAKSY) 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.

One company value investors might notice is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.73, while its industry has an average P/E of 21.62. Over the past 52 weeks, MAKSY's Forward P/E has been as high as 13.45 and as low as 6.01, with a median of 10.28.

Investors should also note that MAKSY holds a PEG ratio of 1.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MAKSY's PEG compares to its industry's average PEG of 3.89. MAKSY's PEG has been as high as 1.50 and as low as 0.44, with a median of 0.51, all within the past year.

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.

Tesco is currently trading with a Forward P/E ratio of 11.77 while its PEG ratio sits at 2.51. Both of the company's metrics compare favorably to its industry's average P/E of 21.62 and average PEG ratio of 3.89.

Over the past year, TSCDY's P/E has been as high as 13.89, as low as 9.09, with a median of 11.93; its PEG ratio has been as high as 4.15, as low as 2.47, with a median of 0.51 during the same time period.

Tesco sports a P/B ratio of 1.60 as well; this compares to its industry's price-to-book ratio of 4.07. In the past 52 weeks, TSCDY's P/B has been as high as 1.76, as low as 0.99, with a median of 1.26.

Value investors will likely look at more than just these metrics, but the above data helps show that Marks and Spencer Group and Tesco are likely undervalued currently. And when considering the strength of its earnings outlook, MAKSY and TSCDY sticks out as one of the market's strongest value stocks.


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