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JSAIY or WMT: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either J. Sainsbury PLC (JSAIY - Free Report) or Walmart (WMT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, J. Sainsbury PLC has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold). This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

JSAIY currently has a forward P/E ratio of 12.21, while WMT has a forward P/E of 24.27. We also note that JSAIY has a PEG ratio of 0.78. 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. WMT currently has a PEG ratio of 4.41.

Another notable valuation metric for JSAIY is its P/B ratio of 0.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WMT has a P/B of 4.96.

These metrics, and several others, help JSAIY earn a Value grade of A, while WMT has been given a Value grade of C.

JSAIY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JSAIY is the superior value option right now.


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