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Should Value Investors Buy Albertsons Companies, Inc. (ACI) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on 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 is trading with a P/E ratio of 9.42, which compares to its industry's average of 23.38. 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 8.35.

ACI is also sporting a PEG ratio of 0.79. 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 PEG compares to its industry's average PEG of 1.75. Within the past year, ACI's PEG has been as high as 0.90 and as low as 0.45, with a median of 0.75.

These are only a few of the key metrics included in Albertsons Companies, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ACI looks like an impressive value stock at the moment.


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