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Should Value Investors Buy Albertsons Companies, Inc. (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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Albertsons Companies, Inc. (ACI - Free Report) . ACI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.71, while its industry has an average P/E of 20.53. Over the past year, ACI's Forward P/E has been as high as 10.28 and as low as 7.14, with a median of 7.95.

We should also highlight that ACI has a P/B ratio of 5.79. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ACI's current P/B looks attractive when compared to its industry's average P/B of 13.04. ACI's P/B has been as high as 7.02 and as low as 4.17, with a median of 5.42, over the past year.

These are just a handful of the figures considered in Albertsons Companies, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACI is an impressive value stock right now.


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