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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Jeronimo Martins SGPS (JRONY). JRONY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.48. This compares to its industry's average Forward P/E of 28.57. Over the last 12 months, JRONY's Forward P/E has been as high as 19.42 and as low as 12.92, with a median of 15.02.
Another notable valuation metric for JRONY is its P/B ratio of 3.62. 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. JRONY's current P/B looks attractive when compared to its industry's average P/B of 7.05. Over the past year, JRONY's P/B has been as high as 5.35 and as low as 3.33, with a median of 4.07.
Finally, we should also recognize that JRONY has a P/CF ratio of 6.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. JRONY's current P/CF looks attractive when compared to its industry's average P/CF of 22.69. Over the past 52 weeks, JRONY's P/CF has been as high as 9.34 and as low as 5.82, with a median of 7.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jeronimo Martins SGPS is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JRONY feels like a great value stock at the moment.
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