We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
TSCDY or WMMVY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Tesco PLC (TSCDY - Free Report) or WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Right now, both Tesco PLC and WalMart de Mexico SAB de CV are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.
TSCDY currently has a forward P/E ratio of 11.89, while WMMVY has a forward P/E of 28.27. We also note that TSCDY has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMMVY currently has a PEG ratio of 3.33.
Another notable valuation metric for TSCDY is its P/B ratio of 1.50. 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 7.60.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMMVY has been given a Value grade of C.
Both TSCDY and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TSCDY is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TSCDY or WMMVY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Tesco PLC (TSCDY - Free Report) or WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Right now, both Tesco PLC and WalMart de Mexico SAB de CV are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.
TSCDY currently has a forward P/E ratio of 11.89, while WMMVY has a forward P/E of 28.27. We also note that TSCDY has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMMVY currently has a PEG ratio of 3.33.
Another notable valuation metric for TSCDY is its P/B ratio of 1.50. 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 7.60.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMMVY has been given a Value grade of C.
Both TSCDY and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TSCDY is the superior value option right now.