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Are Investors Undervaluing Jeronimo Martins SGPS (JRONY) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 to watch right now is Jeronimo Martins SGPS (JRONY). JRONY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 19.78 right now. For comparison, its industry sports an average P/E of 21.15. Over the past 52 weeks, JRONY's Forward P/E has been as high as 23.11 and as low as 16.80, with a median of 19.76.

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JRONY is also sporting a PEG ratio of 1.63. 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. JRONY's PEG compares to its industry's average PEG of 3.77. Over the past 52 weeks, JRONY's PEG has been as high as 1.86 and as low as 1.17, with a median of 1.46.

Finally, we should also recognize that JRONY has a P/CF ratio of 11.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JRONY's P/CF compares to its industry's average P/CF of 14.22. JRONY's P/CF has been as high as 11.46 and as low as 7.80, with a median of 9.63, all within the past year.

These are only a few of the key metrics included in Jeronimo Martins SGPS's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JRONY looks like an impressive value stock at the moment.

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Zacks Investment Research