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Is Marks and Spencer Group (MAKSY) 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice 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 has a Forward P/E ratio of 11.43. This compares to its industry's average Forward P/E of 24.27. Over the past 52 weeks, MAKSY's Forward P/E has been as high as 15.50 and as low as 9.19, with a median of 11.83.

Investors should also recognize that MAKSY has a P/B ratio of 2.06. The P/B ratio is used to compare a stock's market value with 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 5.73. Over the past 12 months, MAKSY's P/B has been as high as 2.06 and as low as 1.19, with a median of 1.67.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Marks and Spencer Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAKSY feels like a great value stock at the moment.


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