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Are Investors Undervaluing Albertsons Companies, Inc. (ACI) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 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 is trading with P/E ratio of 12.80 right now. For comparison, its industry sports an average P/E of 23.97. Over the past year, ACI's Forward P/E has been as high as 13.32 and as low as 5.35, with a median of 9.15.

Investors will also notice that ACI has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACI's PEG compares to its industry's average PEG of 1.67. Over the last 12 months, ACI's PEG has been as high as 1.11 and as low as 0.45, with a median of 0.78.

Finally, we should also recognize that ACI has a P/CF ratio of 7.11. 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 current P/CF looks attractive when compared to its industry's average P/CF of 15.39. Over the past 52 weeks, ACI's P/CF has been as high as 7.41 and as low as 2.15, with a median of 2.86.

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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