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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. However, we always pay attention to the latest value, growth, and momentum trends to highlight strong picks.
Looking back at the history of these trends, perhaps none is more beloved than value investing. This strategy simply seeks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can use 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 time.
One company to watch right now 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 12.73 right now. For comparison, its industry sports an average P/E of 25.26. JSAIY’s Forward P/E has been as high as 15.95 and as low as 11.05, with a median of 12.59, all within the past year.
Investors should also note that JSAIY maintains a PEG ratio of 3.04. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. JSAIY’s PEG compares to the average PEG of 3.26 for its industry. Over the past 52 weeks, JSAIY’s PEG has been as high as 3.60 and as low as 0.38, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the data above helps show that J. Sainsbury’s is likely currently undervalued. And when considering the strength of its earnings outlook, JSAIY stands out as one of the strongest value stocks on the market.
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J. Sainsbury PLC (JSAIY): Free Stock Analysis Report