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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Carrefour (CRRFY - Free Report) is a stock many investors are watching right now. CRRFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.57. This compares to its industry's average Forward P/E of 18.91. Over the past year, CRRFY's Forward P/E has been as high as 11.94 and as low as 8.22, with a median of 9.94.

We should also highlight that CRRFY has a P/B ratio of 1.20. The P/B ratio pits a stock's market value against 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 3.46. Over the past year, CRRFY's P/B has been as high as 1.36 and as low as 0.98, with a median of 1.15.

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.

Tesco is currently trading with a Forward P/E ratio of 12.32 while its PEG ratio sits at 0.38. Both of the company's metrics compare favorably to its industry's average P/E of 18.91 and average PEG ratio of 2.38.

TSCDY's Forward P/E has been as high as 18.18 and as low as 9.73, with a median of 12.42. During the same time period, its PEG ratio has been as high as 2.94, as low as 0.37, with a median of 0.48.

Additionally, Tesco has a P/B ratio of 1.60 while its industry's price-to-book ratio sits at 3.46. For TSCDY, this valuation metric has been as high as 1.73, as low as 1.43, with a median of 1.57 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Carrefour and Tesco are likely undervalued currently. And when considering the strength of its earnings outlook, CRRFY and TSCDY sticks out as one of the market's strongest value stocks.


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