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Should Value Investors Buy These Retail-Wholesale Stocks?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is J. Sainsbury (JSAIY - Free Report) . JSAIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.77. This compares to its industry's average Forward P/E of 19.29. Over the past 52 weeks, JSAIY's Forward P/E has been as high as 22.01 and as low as 11.90, with a median of 13.10.

JSAIY is also sporting a PEG ratio of 0.84. 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. JSAIY's industry currently sports an average PEG of 2.43. JSAIY's PEG has been as high as 3.81 and as low as 0.79, with a median of 0.95, all within the past year.

Another great Retail - Supermarkets stock you could consider is Tesco (TSCDY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Tesco currently holds a Forward P/E ratio of 13.03, and its PEG ratio is 0.40. In comparison, its industry sports average P/E and PEG ratios of 19.29 and 2.43.

Over the past year, TSCDY's P/E has been as high as 18.18, as low as 9.73, with a median of 12.41; its PEG ratio has been as high as 2.94, as low as 0.39, with a median of 0.95 during the same time period.

Furthermore, Tesco holds a P/B ratio of 1.69 and its industry's price-to-book ratio is 3.65. TSCDY's P/B has been as high as 1.97, as low as 1.43, with a median of 1.57 over the past 12 months.

These are only a few of the key metrics included in J. Sainsbury 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, JSAIY and TSCDY look like an impressive value stock at the moment.


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J. Sainsbury PLC (JSAIY) - free report >>

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