Are Investors Undervaluing J. Sainsbury (JSAIY) Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is J. Sainsbury (JSAIY). JSAIY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.45, while its industry has an average P/E of 28.78. Over the past year, JSAIY's Forward P/E has been as high as 15.95 and as low as 11.34, with a median of 12.76.

Investors should also note that JSAIY holds a PEG ratio of 2.20. 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. JSAIY's industry currently sports an average PEG of 3.30. JSAIY's PEG has been as high as 3.60 and as low as 0.38, with a median of 2.57, all within the past year.

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

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