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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.95. This compares to its industry's average Forward P/E of 21.66. 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 10.48.

Investors will also notice that MAKSY has a PEG ratio of 1.48. 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. MAKSY's PEG compares to its industry's average PEG of 3.90. MAKSY's PEG has been as high as 1.50 and as low as 0.44, with a median of 0.52, all within the past year.

Another notable valuation metric for MAKSY is its P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.12. Over the past 12 months, MAKSY's P/B has been as high as 1.46 and as low as 0.53, with a median of 0.94.

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 trading at a forward earnings multiple of 11.26 at the moment, with a PEG ratio of 2.40. This compares to its industry's average P/E of 21.66 and average PEG ratio of 3.90.

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 2.37, with a median of 0.52 during the same time period.

Additionally, Tesco has a P/B ratio of 1.54 while its industry's price-to-book ratio sits at 4.12. For TSCDY, this valuation metric has been as high as 1.76, as low as 0.99, with a median of 1.30 over the past year.

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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Marks and Spencer Group PLC (MAKSY) - free report >>

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