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

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on 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 21.34, which compares to its industry's average of 21.73. Over the past 52 weeks, JRONY's Forward P/E has been as high as 23.11 and as low as 16.80, with a median of 19.81.

JRONY is also sporting a PEG ratio of 1.76. 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 3.91 right now. Within the past year, JRONY's PEG has been as high as 1.86 and as low as 1.17, with a median of 1.46.

Finally, our model also underscores that JRONY has a P/CF ratio of 12.35. 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. JRONY's P/CF compares to its industry's average P/CF of 14.68. Over the past 52 weeks, JRONY's P/CF has been as high as 12.45 and as low as 7.80, with a median of 9.69.

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 11.43 at the moment, with a PEG ratio of 2.44. This compares to its industry's average P/E of 21.73 and average PEG ratio of 3.91.

Over the last 12 months, TSCDY's P/E has been as high as 13.89, as low as 9.09, with a median of 11.93, and its PEG ratio has been as high as 4.15, as low as 2.41, with a median of 3.16.

Tesco sports a P/B ratio of 1.56 as well; this compares to its industry's price-to-book ratio of 4.09. 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 1.27.

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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