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JSAIY or WMT: Which Is the Better Value Stock Right Now?
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Investors interested in Retail - Supermarkets stocks are likely familiar with J. Sainsbury PLC (JSAIY - Free Report) and Walmart (WMT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
J. Sainsbury PLC has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold) right now. This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
JSAIY currently has a forward P/E ratio of 10.74, while WMT has a forward P/E of 32.48. We also note that JSAIY has a PEG ratio of 2.23. 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. WMT currently has a PEG ratio of 4.53.
Another notable valuation metric for JSAIY is its P/B ratio of 0.85. 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. By comparison, WMT has a P/B of 7.04.
Based on these metrics and many more, JSAIY holds a Value grade of A, while WMT has a Value grade of C.
JSAIY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JSAIY is the superior value option right now.
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JSAIY or WMT: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Supermarkets stocks are likely familiar with J. Sainsbury PLC (JSAIY - Free Report) and Walmart (WMT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
J. Sainsbury PLC has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold) right now. This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
JSAIY currently has a forward P/E ratio of 10.74, while WMT has a forward P/E of 32.48. We also note that JSAIY has a PEG ratio of 2.23. 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. WMT currently has a PEG ratio of 4.53.
Another notable valuation metric for JSAIY is its P/B ratio of 0.85. 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. By comparison, WMT has a P/B of 7.04.
Based on these metrics and many more, JSAIY holds a Value grade of A, while WMT has a Value grade of C.
JSAIY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JSAIY is the superior value option right now.