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Sendas Distribuidora S.A. Sponsored ADR (ASAI) - free report >>
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Sendas Distribuidora S.A. Sponsored ADR (ASAI) - free report >>
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Should Value Investors Buy Sendas Distribuidora (ASAI) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Sendas Distribuidora (ASAI - Free Report) . ASAI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that ASAI has a P/B ratio of 4.43. 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. ASAI's current P/B looks attractive when compared to its industry's average P/B of 5.51. Over the past 12 months, ASAI's P/B has been as high as 7.40 and as low as 3.27, with a median of 4.27.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASAI has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.73.
These are just a handful of the figures considered in Sendas Distribuidora's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASAI is an impressive value stock right now.