Are Investors Undervaluing Marks and Spencer Group (MAKSY) Right Now?
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 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.
Marks and Spencer Group (MAKSY) is a stock many investors are watching right now. MAKSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.09, while its industry has an average P/E of 27.02. Over the past year, MAKSY's Forward P/E has been as high as 15.50 and as low as 9.19, with a median of 11.68.
Another valuation metric that we should highlight is MAKSY's P/B ratio of 2.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.79. Over the past 12 months, MAKSY's P/B has been as high as 2.61 and as low as 1.43, with a median of 1.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marks and Spencer Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAKSY feels like a great value stock at the moment.
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Marks and Spencer Group PLC (MAKSY) : Free Stock Analysis Report