Yahoo Finance 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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) and an A for Value. The stock holds a P/E ratio of 21, while its industry has an average P/E of 21.59. JRONY's Forward P/E has been as high as 26.80 and as low as 17.02, with a median of 21.32, all within the past year.
JRONY is also sporting a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JRONY's PEG compares to its industry's average PEG of 3.18. Over the past 52 weeks, JRONY's PEG has been as high as 2.25 and as low as 1.36, with a median of 1.73.
Finally, our model also underscores that JRONY has a P/CF ratio of 10.41. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.33. JRONY's P/CF has been as high as 11.63 and as low as 8.15, with a median of 10.24, all within the past year.
Investors could also keep in mind The Kroger Co. (KR), an Retail - Supermarkets stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
The Kroger Co. is trading at a forward earnings multiple of 11.40 at the moment, with a PEG ratio of 0.98. This compares to its industry's average P/E of 21.59 and average PEG ratio of 3.18.
KR's price-to-earnings ratio has been as high as 16.61 and as low as 10.15, with a median of 12.73, while its PEG ratio has been as high as 1.98 and as low as 0.87, with a median of 1.33, all within the past year.
The Kroger Co. sports a P/B ratio of 3.43 as well; this compares to its industry's price-to-book ratio of 4.05. In the past 52 weeks, KR's P/B has been as high as 4.81, as low as 3.13, with a median of 3.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Jeronimo Martins SGPS and The Kroger Co. are likely undervalued currently. And when considering the strength of its earnings outlook, JRONY and KR sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Jeronimo Martins SGPS SA (JRONY) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
