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TSCDY vs. WMMVY: Which Stock Is the Better Value Option?
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Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY - Free Report) and Wal-Mart 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, both Tesco PLC and Wal-Mart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
TSCDY currently has a forward P/E ratio of 11.73, while WMMVY has a forward P/E of 22.49. We also note that TSCDY has a PEG ratio of 2.50. 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. WMMVY currently has a PEG ratio of 2.54.
Another notable valuation metric for TSCDY is its P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 6.60.
Based on these metrics and many more, TSCDY holds a Value grade of A, while WMMVY has 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.
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TSCDY vs. WMMVY: Which Stock Is the Better Value Option?
Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY - Free Report) and Wal-Mart 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, both Tesco PLC and Wal-Mart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
TSCDY currently has a forward P/E ratio of 11.73, while WMMVY has a forward P/E of 22.49. We also note that TSCDY has a PEG ratio of 2.50. 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. WMMVY currently has a PEG ratio of 2.54.
Another notable valuation metric for TSCDY is its P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 6.60.
Based on these metrics and many more, TSCDY holds a Value grade of A, while WMMVY has 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.