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Is The Kroger Co. (KR) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 The Kroger Co. (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.81, which compares to its industry's average of 21.87. Over the past 52 weeks, KR's Forward P/E has been as high as 11.92 and as low as 9.68, with a median of 10.57.
We also note that KR holds a PEG ratio of 2.08. 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. KR's industry currently sports an average PEG of 3.16. Over the last 12 months, KR's PEG has been as high as 2.31 and as low as 0.95, with a median of 1.80.
Another notable valuation metric for KR is its P/B ratio of 2.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.26. Within the past 52 weeks, KR's P/B has been as high as 3.57 and as low as 2.93, with a median of 3.21.
Finally, investors should note that KR has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 14.09. KR's P/CF has been as high as 6.53 and as low as 5.09, with a median of 5.69, all within the past year.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Marks and Spencer Group (MAKSY - Free Report) . MAKSY is a # 2 (Buy) stock with a Value score of A.
Marks and Spencer Group is trading at a forward earnings multiple of 13.78 at the moment, with a PEG ratio of 1.21. This compares to its industry's average P/E of 21.87 and average PEG ratio of 3.16.
MAKSY's Forward P/E has been as high as 13.79 and as low as 8.37, with a median of 12. During the same time period, its PEG ratio has been as high as 1.71, as low as 0.44, with a median of 1.45.
Marks and Spencer Group also has a P/B ratio of 1.78 compared to its industry's price-to-book ratio of 4.26. Over the past year, its P/B ratio has been as high as 1.78, as low as 0.71, with a median of 1.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Kroger Co. and Marks and Spencer Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR and MAKSY feels like a great value stock at the moment.
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Is The Kroger Co. (KR) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 The Kroger Co. (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.81, which compares to its industry's average of 21.87. Over the past 52 weeks, KR's Forward P/E has been as high as 11.92 and as low as 9.68, with a median of 10.57.
We also note that KR holds a PEG ratio of 2.08. 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. KR's industry currently sports an average PEG of 3.16. Over the last 12 months, KR's PEG has been as high as 2.31 and as low as 0.95, with a median of 1.80.
Another notable valuation metric for KR is its P/B ratio of 2.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.26. Within the past 52 weeks, KR's P/B has been as high as 3.57 and as low as 2.93, with a median of 3.21.
Finally, investors should note that KR has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 14.09. KR's P/CF has been as high as 6.53 and as low as 5.09, with a median of 5.69, all within the past year.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Marks and Spencer Group (MAKSY - Free Report) . MAKSY is a # 2 (Buy) stock with a Value score of A.
Marks and Spencer Group is trading at a forward earnings multiple of 13.78 at the moment, with a PEG ratio of 1.21. This compares to its industry's average P/E of 21.87 and average PEG ratio of 3.16.
MAKSY's Forward P/E has been as high as 13.79 and as low as 8.37, with a median of 12. During the same time period, its PEG ratio has been as high as 1.71, as low as 0.44, with a median of 1.45.
Marks and Spencer Group also has a P/B ratio of 1.78 compared to its industry's price-to-book ratio of 4.26. Over the past year, its P/B ratio has been as high as 1.78, as low as 0.71, with a median of 1.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Kroger Co. and Marks and Spencer Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR and MAKSY feels like a great value stock at the moment.