Should Value Investors Buy Tesco (TSCDY) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Tesco (TSCDY). TSCDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.89. This compares to its industry's average Forward P/E of 22.19. Over the past 52 weeks, TSCDY's Forward P/E has been as high as 13.89 and as low as 10.58, with a median of 12.20.
We should also highlight that TSCDY has a P/B ratio of 1.69. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.12. Over the past 12 months, TSCDY's P/B has been as high as 1.78 and as low as 1.31, with a median of 1.60.
These are only a few of the key metrics included in Tesco'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, TSCDY looks like an impressive value stock at the moment.
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Tesco PLC (TSCDY) : Free Stock Analysis Report
