Is Carrefour (CRRFY) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 holds a P/E ratio of 13.72, while its industry has an average P/E of 20.82. Over the past 52 weeks, CRRFY's Forward P/E has been as high as 16.37 and as low as 13.01, with a median of 14.69.
We should also highlight that CRRFY has a P/B ratio of 1.14. 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 3.26. Within the past 52 weeks, CRRFY's P/B has been as high as 1.23 and as low as 0.93, with a median of 1.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Carrefour is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRRFY feels like a great value stock at the moment.
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