Should Value Investors Buy J. Sainsbury (JSAIY) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

J. Sainsbury (JSAIY) is a stock many investors are watching right now. JSAIY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.91 right now. For comparison, its industry sports an average P/E of 33.07. Over the past year, JSAIY's Forward P/E has been as high as 13.80 and as low as 9.07, with a median of 11.27.

Investors should also note that JSAIY holds a PEG ratio of 3.34. 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. JSAIY's PEG compares to its industry's average PEG of 3.62. Over the last 12 months, JSAIY's PEG has been as high as 4.70 and as low as 1.92, with a median of 2.66.

These are just a handful of the figures considered in J. Sainsbury'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 JSAIY is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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