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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 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 P/E ratio of 9.70 right now. For comparison, its industry sports an average P/E of 23.86. Over the last 12 months, ACI's Forward P/E has been as high as 10.80 and as low as 5.35, with a median of 8.19.

We also note that ACI holds a PEG ratio of 0.81. 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. ACI's industry currently sports an average PEG of 1.77. Over the past 52 weeks, ACI's PEG has been as high as 0.90 and as low as 0.45, with a median of 0.74.

Another notable valuation metric for ACI is its P/B ratio of 6.80. 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 stock's P/B looks solid versus its industry's average P/B of 10.80. Within the past 52 weeks, ACI's P/B has been as high as 7.17 and as low as 4.17, with a median of 5.85.

Finally, we should also recognize that ACI has a P/CF ratio of 3.76. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.08. Within the past 12 months, ACI's P/CF has been as high as 3.96 and as low as 2.15, with a median of 2.67.

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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