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Should Value Investors Buy Marks and Spencer Group (MAKSY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

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 is trading with P/E ratio of 11.91 right now. For comparison, its industry sports an average P/E of 21.43. MAKSY's Forward P/E has been as high as 15.50 and as low as 10.14, with a median of 12.23, all within the past year.

Another notable valuation metric for MAKSY is its P/B ratio of 1.80. 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. This company's current P/B looks solid when compared to its industry's average P/B of 4.22. Within the past 52 weeks, MAKSY's P/B has been as high as 2.03 and as low as 0.98, with a median of 1.48.

Investors could also keep in mind Tesco (TSCDY - Free Report) , an Retail - Supermarkets stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Tesco are currently trading at a forward earnings multiple of 13.27 and a PEG ratio of 0.52 compared to its industry's P/E and PEG ratios of 21.43 and 3.20, respectively.

Over the past year, TSCDY's P/E has been as high as 13.89, as low as 10.58, with a median of 12.20; its PEG ratio has been as high as 2.95, as low as 0.44, with a median of 1.01 during the same time period.

Additionally, Tesco has a P/B ratio of 1.75 while its industry's price-to-book ratio sits at 4.22. For TSCDY, this valuation metric has been as high as 1.78, as low as 1.30, with a median of 1.58 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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