Should Value Investors Buy Carrefour (CRRFY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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), as well as a Value grade of A. The stock is trading with P/E ratio of 15.21 right now. For comparison, its industry sports an average P/E of 19.66. Over the last 12 months, CRRFY's Forward P/E has been as high as 17.55 and as low as 11.25, with a median of 15.01.
CRRFY is also sporting a PEG ratio of 2.21. 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 3.05. Within the past year, CRRFY's PEG has been as high as 2.71 and as low as 1.07, with a median of 2.19.
We should also highlight that CRRFY has a P/B ratio of 1.16. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.30. Within the past 52 weeks, CRRFY's P/B has been as high as 1.34 and as low as 0.89, with a median of 1.11.
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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