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Are Investors Undervaluing Carrefour (CRRFY) Right Now?

Zacks Equity Research
MarineMax (HZO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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 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 value investors might notice is Carrefour (CRRFY). CRRFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.40, while its industry has an average P/E of 19.95. Over the past year, CRRFY's Forward P/E has been as high as 16.37 and as low as 11.25, with a median of 14.90.

CRRFY is also sporting a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CRRFY's industry has an average PEG of 3.42 right now. CRRFY's PEG has been as high as 2.71 and as low as 1.20, with a median of 2.10, all within the past year.

Investors should also recognize that CRRFY has a P/B ratio of 1.18. 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 3.18. Over the past year, CRRFY's P/B has been as high as 1.26 and as low as 0.89, with a median of 1.11.

These are only a few of the key metrics included in Carrefour'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, CRRFY looks like an impressive value stock at the moment.


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