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ACI or PRPL: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Albertsons Companies, Inc. (ACI - Free Report) or Purple Innovation (PRPL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Purple Innovation has a Zacks Rank of #3 (Hold) right now. This means that ACI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ACI currently has a forward P/E ratio of 13.78, while PRPL has a forward P/E of 32.09. We also note that ACI has a PEG ratio of 1.15. 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. PRPL currently has a PEG ratio of 1.98.
Another notable valuation metric for ACI is its P/B ratio of 8.60. 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, PRPL has a P/B of 9.23.
Based on these metrics and many more, ACI holds a Value grade of A, while PRPL has a Value grade of C.
ACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ACI is likely the superior value option right now.
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ACI or PRPL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Albertsons Companies, Inc. (ACI - Free Report) or Purple Innovation (PRPL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Purple Innovation has a Zacks Rank of #3 (Hold) right now. This means that ACI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ACI currently has a forward P/E ratio of 13.78, while PRPL has a forward P/E of 32.09. We also note that ACI has a PEG ratio of 1.15. 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. PRPL currently has a PEG ratio of 1.98.
Another notable valuation metric for ACI is its P/B ratio of 8.60. 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, PRPL has a P/B of 9.23.
Based on these metrics and many more, ACI holds a Value grade of A, while PRPL has a Value grade of C.
ACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ACI is likely the superior value option right now.