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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.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.93, while its industry has an average P/E of 21.96. Over the past 52 weeks, MAKSY's Forward P/E has been as high as 15.50 and as low as 10.14, with a median of 12.18.

Investors should also recognize that MAKSY has a P/B ratio of 1.65. 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 stock's P/B looks attractive against its industry's average P/B of 4.03. Over the past year, MAKSY's P/B has been as high as 2.03 and as low as 0.98, with a median of 1.51.

If you're looking for another solid Retail - Supermarkets value stock, take a look at Tesco (TSCDY - Free Report) . TSCDY is a # 2 (Buy) stock with a Value score of A.

Tesco is trading at a forward earnings multiple of 13.47 at the moment, with a PEG ratio of 0.52. This compares to its industry's average P/E of 21.96 and average PEG ratio of 3.28.

Over the last 12 months, TSCDY's P/E has been as high as 13.89, as low as 10.58, with a median of 12.20, and its PEG ratio has been as high as 2.95, as low as 0.44, with a median of 2.42.

Tesco sports a P/B ratio of 1.65 as well; this compares to its industry's price-to-book ratio of 4.03. In the past 52 weeks, TSCDY's P/B has been as high as 1.78, as low as 1.30, with a median of 1.59.

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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