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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Carrefour (CRRFY). CRRFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.50 right now. For comparison, its industry sports an average P/E of 19.38. Over the past year, CRRFY's Forward P/E has been as high as 17.55 and as low as 11.25, with a median of 14.44.
CRRFY is also sporting a PEG ratio of 2.57. 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. CRRFY's PEG compares to its industry's average PEG of 2.75. Over the past 52 weeks, CRRFY's PEG has been as high as 9.79 and as low as 1.07, with a median of 2.31.
Another notable valuation metric for CRRFY is its P/B ratio of 1.03. 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 solid versus its industry's average P/B of 3.07. Over the past 12 months, CRRFY's P/B has been as high as 1.34 and as low as 0.83, with a median of 1.17.
These are just a handful of the figures considered in Carrefour'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 CRRFY is an impressive value stock right now.
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