We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CRRFY vs. WMMVY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Carrefour SA (CRRFY - Free Report) or 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.
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.
Right now, Carrefour SA is sporting a Zacks Rank of #2 (Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRRFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
CRRFY currently has a forward P/E ratio of 9.30, while WMMVY has a forward P/E of 17.05. We also note that CRRFY has a PEG ratio of 2.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMMVY currently has a PEG ratio of 4.96.
Another notable valuation metric for CRRFY is its P/B ratio of 1. 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 4.44.
These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.
CRRFY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMMVY, so it seems like value investors will conclude that CRRFY is the superior option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
CRRFY vs. WMMVY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Carrefour SA (CRRFY - Free Report) or 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.
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.
Right now, Carrefour SA is sporting a Zacks Rank of #2 (Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRRFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
CRRFY currently has a forward P/E ratio of 9.30, while WMMVY has a forward P/E of 17.05. We also note that CRRFY has a PEG ratio of 2.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMMVY currently has a PEG ratio of 4.96.
Another notable valuation metric for CRRFY is its P/B ratio of 1. 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 4.44.
These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.
CRRFY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMMVY, so it seems like value investors will conclude that CRRFY is the superior option right now.