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JSAIY or WMT: Which Is the Better Value Stock Right Now?
September 20, 2024

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both J. Sainsbury PLC (JSAIY - Free Report) and Walmart (WMT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

J. Sainsbury PLC has a Zacks Rank of #1 (Strong Buy), while Walmart has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JSAIY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JSAIY currently has a forward P/E ratio of 13.82, while WMT has a forward P/E of 32.02. We also note that JSAIY has a PEG ratio of 2.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT currently has a PEG ratio of 3.91.

Another notable valuation metric for JSAIY is its P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMT has a P/B of 6.93.

These are just a few of the metrics contributing to JSAIY's Value grade of A and WMT's Value grade of C.

JSAIY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JSAIY is the superior value option right now.




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