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Should Value Investors Buy Albertsons Companies (ACI) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Albertsons Companies (ACI - Free Report) . ACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.92. This compares to its industry's average Forward P/E of 18.59. ACI's Forward P/E has been as high as 66 and as low as 6.73, with a median of 9.64, all within the past year.
ACI is also sporting a PEG ratio of 1.28. 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. ACI's PEG compares to its industry's average PEG of 1.88. ACI's PEG has been as high as 8.25 and as low as 1.19, with a median of 1.53, all within the past year.
Investors should also recognize that ACI has a P/B ratio of 2.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.77. Over the past year, ACI's P/B has been as high as 6.45 and as low as 2.46, with a median of 3.70.
Ahold (ADRNY - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ADRNY is a # 2 (Buy) stock with a Value grade of A.
Ahold is currently trading with a Forward P/E ratio of 12.26 while its PEG ratio sits at 1.91. Both of the company's metrics compare favorably to its industry's average P/E of 18.59 and average PEG ratio of 1.88.
ADRNY's price-to-earnings ratio has been as high as 15.40 and as low as 10.34, with a median of 11.87, while its PEG ratio has been as high as 4.13 and as low as 1.61, with a median of 1.88, all within the past year.
Ahold sports a P/B ratio of 1.77 as well; this compares to its industry's price-to-book ratio of 3.77. In the past 52 weeks, ADRNY's P/B has been as high as 2.29, as low as 1.53, with a median of 1.80.
These are only a few of the key metrics included in Albertsons Companies and Ahold strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACI and ADRNY look like an impressive value stock at the moment.
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Should Value Investors Buy Albertsons Companies (ACI) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Albertsons Companies (ACI - Free Report) . ACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.92. This compares to its industry's average Forward P/E of 18.59. ACI's Forward P/E has been as high as 66 and as low as 6.73, with a median of 9.64, all within the past year.
ACI is also sporting a PEG ratio of 1.28. 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. ACI's PEG compares to its industry's average PEG of 1.88. ACI's PEG has been as high as 8.25 and as low as 1.19, with a median of 1.53, all within the past year.
Investors should also recognize that ACI has a P/B ratio of 2.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.77. Over the past year, ACI's P/B has been as high as 6.45 and as low as 2.46, with a median of 3.70.
Ahold (ADRNY - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ADRNY is a # 2 (Buy) stock with a Value grade of A.
Ahold is currently trading with a Forward P/E ratio of 12.26 while its PEG ratio sits at 1.91. Both of the company's metrics compare favorably to its industry's average P/E of 18.59 and average PEG ratio of 1.88.
ADRNY's price-to-earnings ratio has been as high as 15.40 and as low as 10.34, with a median of 11.87, while its PEG ratio has been as high as 4.13 and as low as 1.61, with a median of 1.88, all within the past year.
Ahold sports a P/B ratio of 1.77 as well; this compares to its industry's price-to-book ratio of 3.77. In the past 52 weeks, ADRNY's P/B has been as high as 2.29, as low as 1.53, with a median of 1.80.
These are only a few of the key metrics included in Albertsons Companies and Ahold strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACI and ADRNY look like an impressive value stock at the moment.