Are Investors Undervaluing The Kroger Co. (KR) Right Now?

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.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.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One stock to keep an eye on is The Kroger Co. (KR). KR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.15 right now. For comparison, its industry sports an average P/E of 31.92. Over the past year, KR's Forward P/E has been as high as 14.71 and as low as 10.92, with a median of 12.35.KR is also sporting a PEG ratio of 2.01. 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. KR's industry has an average PEG of 4.46 right now. Over the last 12 months, KR's PEG has been as high as 3.07 and as low as 0.77, with a median of 1.03.Another notable valuation metric for KR is its P/B ratio of 5.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. KR's current P/B looks attractive when compared to its industry's average P/B of 7.47. Within the past 52 weeks, KR's P/B has been as high as 6.18 and as low as 2.87, with a median of 3.26.Finally, investors will want to recognize that KR has a P/CF ratio of 7.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.35. Over the past 52 weeks, KR's P/CF has been as high as 7.56 and as low as 5.68, with a median of 6.56.These figures are just a handful of the metrics value investors tend to look at, but they help show that The Kroger Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KR feels like a great value stock at the moment.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Kroger Co. (KR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks