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Is The Kroger Co. (KR) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is The Kroger Co. (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.45. This compares to its industry's average Forward P/E of 21.29. Over the past 52 weeks, KR's Forward P/E has been as high as 12.79 and as low as 9.90, with a median of 10.78.
KR is also sporting a PEG ratio of 1.82. 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. KR's PEG compares to its industry's average PEG of 3.32. KR's PEG has been as high as 1.92 and as low as 0.87, with a median of 1.74, all within the past year.
Another valuation metric that we should highlight is KR's P/B ratio of 3.10. 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. This stock's P/B looks attractive against its industry's average P/B of 4.39. Within the past 52 weeks, KR's P/B has been as high as 3.86 and as low as 2.95, with a median of 3.26.
Finally, investors will want to recognize that KR has a P/CF ratio of 5.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 14.94. Over the past 52 weeks, KR's P/CF has been as high as 6.34 and as low as 5.09, with a median of 5.58.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Tesco (TSCDY - Free Report) . TSCDY is a # 2 (Buy) stock with a Value score of A.
Tesco is trading at a forward earnings multiple of 11.18 at the moment, with a PEG ratio of 2.38. This compares to its industry's average P/E of 21.29 and average PEG ratio of 3.32.
Over the last 12 months, TSCDY's P/E has been as high as 13.89, as low as 9.09, with a median of 11.95, and its PEG ratio has been as high as 4.15, as low as 2.34, with a median of 2.88.
Tesco sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 4.39. In the past 52 weeks, TSCDY's P/B has been as high as 1.76, as low as 0.99, with a median of 1.36.
Value investors will likely look at more than just these metrics, but the above data helps show that The Kroger Co. and Tesco are likely undervalued currently. And when considering the strength of its earnings outlook, KR and TSCDY sticks out as one of the market's strongest value stocks.
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Is The Kroger Co. (KR) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is The Kroger Co. (KR - Free Report) . KR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.45. This compares to its industry's average Forward P/E of 21.29. Over the past 52 weeks, KR's Forward P/E has been as high as 12.79 and as low as 9.90, with a median of 10.78.
KR is also sporting a PEG ratio of 1.82. 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. KR's PEG compares to its industry's average PEG of 3.32. KR's PEG has been as high as 1.92 and as low as 0.87, with a median of 1.74, all within the past year.
Another valuation metric that we should highlight is KR's P/B ratio of 3.10. 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. This stock's P/B looks attractive against its industry's average P/B of 4.39. Within the past 52 weeks, KR's P/B has been as high as 3.86 and as low as 2.95, with a median of 3.26.
Finally, investors will want to recognize that KR has a P/CF ratio of 5.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KR's current P/CF looks attractive when compared to its industry's average P/CF of 14.94. Over the past 52 weeks, KR's P/CF has been as high as 6.34 and as low as 5.09, with a median of 5.58.
If you're looking for another solid Retail - Supermarkets value stock, take a look at Tesco (TSCDY - Free Report) . TSCDY is a # 2 (Buy) stock with a Value score of A.
Tesco is trading at a forward earnings multiple of 11.18 at the moment, with a PEG ratio of 2.38. This compares to its industry's average P/E of 21.29 and average PEG ratio of 3.32.
Over the last 12 months, TSCDY's P/E has been as high as 13.89, as low as 9.09, with a median of 11.95, and its PEG ratio has been as high as 4.15, as low as 2.34, with a median of 2.88.
Tesco sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 4.39. In the past 52 weeks, TSCDY's P/B has been as high as 1.76, as low as 0.99, with a median of 1.36.
Value investors will likely look at more than just these metrics, but the above data helps show that The Kroger Co. and Tesco are likely undervalued currently. And when considering the strength of its earnings outlook, KR and TSCDY sticks out as one of the market's strongest value stocks.