Should Value Investors Buy Sodexo (SDXAY) Stock?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.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.Sodexo (SDXAY) is a stock many investors are watching right now. SDXAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.88 right now. For comparison, its industry sports an average P/E of 22. Over the last 12 months, SDXAY's Forward P/E has been as high as 16.24 and as low as 10.84, with a median of 13.94.Another valuation metric that we should highlight is SDXAY's P/B ratio of 2.36. 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. SDXAY's current P/B looks attractive when compared to its industry's average P/B of 4.81. Over the past 12 months, SDXAY's P/B has been as high as 3.22 and as low as 2.34, with a median of 2.86.These figures are just a handful of the metrics value investors tend to look at, but they help show that Sodexo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SDXAY feels like a great value stock at the moment.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Sodexo S.A. Sponsored ADR (SDXAY): 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