Should Value Investors Buy Tesco (TSCDY) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.52. This compares to its industry's average Forward P/E of 27.90. TSCDY's Forward P/E has been as high as 14.63 and as low as 10.77, with a median of 12.49, all within the past year.
Investors will also notice that TSCDY has a PEG ratio of 1.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSCDY's industry currently sports an average PEG of 3.20. Within the past year, TSCDY's PEG has been as high as 2.60 and as low as 0.42, with a median of 0.54.
These are just a handful of the figures considered in Tesco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TSCDY is an impressive value stock right now.
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Tesco PLC (TSCDY) : Free Stock Analysis Report