Are Investors Undervaluing Carrefour (CRRFY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Carrefour (CRRFY). CRRFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.75, while its industry has an average P/E of 19.36. 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 14.67.
CRRFY is also sporting a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRRFY's industry has an average PEG of 3.32 right now. CRRFY's PEG has been as high as 2.71 and as low as 1.20, with a median of 2.06, all within the past year.
Investors should also recognize that CRRFY has a P/B ratio of 1.22. 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. CRRFY's current P/B looks attractive when compared to its industry's average P/B of 3.10. 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 1.12.
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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