Yahoo Finance Should Value Investors Buy J. Sainsbury (JSAIY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 is trading with a P/E ratio of 12.78, which compares to its industry's average of 24.12. Over the past 52 weeks, JSAIY's Forward P/E has been as high as 15.95 and as low as 11.05, with a median of 12.78.
We also note that JSAIY holds a PEG ratio of 2.81. 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. JSAIY's PEG compares to its industry's average PEG of 3.42. Within the past year, JSAIY's PEG has been as high as 3.60 and as low as 0.38, with a median of 0.52.
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
