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Are Investors Undervaluing Marks and Spencer Group (MAKSY) 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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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) and an A for Value. The stock holds a P/E ratio of 13.29, while its industry has an average P/E of 20.50. Over the past 52 weeks, MAKSY's Forward P/E has been as high as 14.20 and as low as 9.66, with a median of 12.06.

Another valuation metric that we should highlight is MAKSY's P/B ratio of 1.81. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MAKSY's current P/B looks attractive when compared to its industry's average P/B of 3.99. Within the past 52 weeks, MAKSY's P/B has been as high as 1.84 and as low as 0.80, with a median of 1.25.

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


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