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TSCDY vs. WMMVY: Which Stock Should Value Investors Buy Now?
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Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Tesco PLC has a Zacks Rank of #1 (Strong Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TSCDY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. However, value investors will care about much more than just this.
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.
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.
TSCDY currently has a forward P/E ratio of 15.57, while WMMVY has a forward P/E of 16.97. We also note that TSCDY has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 6.00.
Another notable valuation metric for TSCDY is its P/B ratio of 2.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 4.18.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMMVY has been given a Value grade of C.
TSCDY stands above WMMVY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TSCDY is the superior value option right now.
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TSCDY vs. WMMVY: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Tesco PLC has a Zacks Rank of #1 (Strong Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TSCDY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. However, value investors will care about much more than just this.
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.
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.
TSCDY currently has a forward P/E ratio of 15.57, while WMMVY has a forward P/E of 16.97. We also note that TSCDY has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 6.00.
Another notable valuation metric for TSCDY is its P/B ratio of 2.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 4.18.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMMVY has been given a Value grade of C.
TSCDY stands above WMMVY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TSCDY is the superior value option right now.