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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is J. Sainsbury (JSAIY). JSAIY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.68, while its industry has an average P/E of 29.44. JSAIY's Forward P/E has been as high as 13.87 and as low as 9.73, with a median of 11.90, all within the past year.
JSAIY is also sporting a PEG ratio of 2.57. 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 PEG compares to its industry's average PEG of 4.11. Over the last 12 months, JSAIY's PEG has been as high as 3.60 and as low as 1.92, with a median of 2.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that J. Sainsbury is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JSAIY feels like a great value stock at the moment.
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J. Sainsbury PLC (JSAIY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).