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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Marks and Spencer Group (MAKSY - Free Report) . MAKSY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.08. This compares to its industry's average Forward P/E of 26.46. 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 11.68.

Investors should also recognize that MAKSY has a P/B ratio of 2.40. 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. This stock's P/B looks attractive against its industry's average P/B of 6.61. Over the past year, MAKSY's P/B has been as high as 2.47 and as low as 1.43, with a median of 1.78.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Marks and Spencer Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAKSY feels like a great value stock at the moment.


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