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ACI vs. PRPL: Which Stock Is the Better Value Option?
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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Albertsons Companies, Inc. (ACI - Free Report) and Purple Innovation (PRPL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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. and Purple Innovation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACI currently has a forward P/E ratio of 5.61, while PRPL has a forward P/E of 39.46. We also note that ACI has a PEG ratio of 0.47. 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 2.63.
Another notable valuation metric for ACI is its P/B ratio of 5.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRPL has a P/B of 49.77.
These are just a few of the metrics contributing to ACI's Value grade of A and PRPL's Value grade of D.
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 vs. PRPL: Which Stock Is the Better Value Option?
Investors with an interest in Consumer Products - Staples stocks have likely encountered both Albertsons Companies, Inc. (ACI - Free Report) and Purple Innovation (PRPL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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. and Purple Innovation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACI currently has a forward P/E ratio of 5.61, while PRPL has a forward P/E of 39.46. We also note that ACI has a PEG ratio of 0.47. 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 2.63.
Another notable valuation metric for ACI is its P/B ratio of 5.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRPL has a P/B of 49.77.
These are just a few of the metrics contributing to ACI's Value grade of A and PRPL's Value grade of D.
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.