Yahoo Finance Are Investors Undervaluing Tesco (TSCDY) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Tesco (TSCDY) is a stock many investors are watching right now. TSCDY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.11. This compares to its industry's average Forward P/E of 23.15. Over the past 52 weeks, TSCDY's Forward P/E has been as high as 13.85 and as low as 10.58, with a median of 11.86.
We also note that TSCDY holds a PEG ratio of 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSCDY's PEG compares to its industry's average PEG of 3.64. Over the last 12 months, TSCDY's PEG has been as high as 2.95 and as low as 0.42, with a median of 0.54.
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
