Is Albertsons Companies, Inc. (ACI) Stock Undervalued Right Now?

ACI

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 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.

One company to watch right now is Albertsons Companies, Inc. (ACI - Free Report) . ACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.82, which compares to its industry's average of 23.98. Over the last 12 months, ACI's Forward P/E has been as high as 11.11 and as low as 5.35, with a median of 8.75.

ACI is also sporting a PEG ratio of 0.90. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACI's PEG compares to its industry's average PEG of 1.96. Over the past 52 weeks, ACI's PEG has been as high as 0.93 and as low as 0.45, with a median of 0.77.

Finally, investors will want to recognize that ACI has a P/CF ratio of 5.65. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ACI's P/CF compares to its industry's average P/CF of 15.30. Over the past year, ACI's P/CF has been as high as 5.80 and as low as 2.15, with a median of 2.75.

Value investors will likely look at more than just these metrics, but the above data helps show that Albertsons Companies, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, ACI sticks out at as one of the market's strongest value stocks.

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