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Should Value Investors Buy Marks and Spencer Group (MAKSY) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.40. This compares to its industry's average Forward P/E of 25.07. Over the last 12 months, MAKSY's Forward P/E has been as high as 15.50 and as low as 9.19, with a median of 11.82.

Another valuation metric that we should highlight is MAKSY's P/B ratio of 2.16. 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 solid versus its industry's average P/B of 5.99. Within the past 52 weeks, MAKSY's P/B has been as high as 2.30 and as low as 1.38, with a median of 1.70.

These are just a handful of the figures considered in Marks and Spencer Group'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 MAKSY is an impressive value stock right now.


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