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TSCDY or JRONY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Tesco PLC (TSCDY - Free Report) and Jeronimo Martins SGPS SA (JRONY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Tesco PLC has a Zacks Rank of #2 (Buy), while Jeronimo Martins SGPS SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TSCDY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TSCDY currently has a forward P/E ratio of 11.99, while JRONY has a forward P/E of 19.56. We also note that TSCDY has a PEG ratio of 0.47. 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. JRONY currently has a PEG ratio of 1.69.
Another notable valuation metric for TSCDY is its P/B ratio of 1.74. 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. By comparison, JRONY has a P/B of 5.62.
These are just a few of the metrics contributing to TSCDY's Value grade of A and JRONY's Value grade of C.
TSCDY has seen stronger estimate revision activity and sports more attractive valuation metrics than JRONY, so it seems like value investors will conclude that TSCDY is the superior option right now.
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TSCDY or JRONY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Tesco PLC (TSCDY - Free Report) and Jeronimo Martins SGPS SA (JRONY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Tesco PLC has a Zacks Rank of #2 (Buy), while Jeronimo Martins SGPS SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TSCDY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TSCDY currently has a forward P/E ratio of 11.99, while JRONY has a forward P/E of 19.56. We also note that TSCDY has a PEG ratio of 0.47. 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. JRONY currently has a PEG ratio of 1.69.
Another notable valuation metric for TSCDY is its P/B ratio of 1.74. 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. By comparison, JRONY has a P/B of 5.62.
These are just a few of the metrics contributing to TSCDY's Value grade of A and JRONY's Value grade of C.
TSCDY has seen stronger estimate revision activity and sports more attractive valuation metrics than JRONY, so it seems like value investors will conclude that TSCDY is the superior option right now.