Are Investors Undervaluing Marks and Spencer (MAKSY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 Marks and Spencer (MAKSY). MAKSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.48 right now. For comparison, its industry sports an average P/E of 19.17. MAKSY's Forward P/E has been as high as 13.21 and as low as 9.43, with a median of 10.87, all within the past year.
We should also highlight that MAKSY has a P/B ratio of 1.49. The P/B is a method of comparing a stock's market value to 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 3.04. Within the past 52 weeks, MAKSY's P/B has been as high as 1.72 and as low as 1.27, with a median of 1.60.
These are just a handful of the figures considered in Marks and Spencer'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 MAKSY is an impressive value stock right now.
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