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ACI or PRPL: Which Is the Better Value Stock Right Now?
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Investors interested in Consumer Products - Staples stocks are likely familiar with Albertsons Companies, Inc. (ACI - Free Report) and Purple Innovation (PRPL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Purple Innovation has a Zacks Rank of #4 (Sell) 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 only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ACI currently has a forward P/E ratio of 12.10, while PRPL has a forward P/E of 29.99. We also note that ACI has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PRPL currently has a PEG ratio of 1.85.
Another notable valuation metric for ACI is its P/B ratio of 7.79. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PRPL has a P/B of 8.58.
These are just a few of the metrics contributing to ACI's Value grade of A and PRPL's Value grade of C.
ACI sticks out from PRPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACI is the better option right now.
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ACI or PRPL: Which Is the Better Value Stock Right Now?
Investors interested in Consumer Products - Staples stocks are likely familiar with Albertsons Companies, Inc. (ACI - Free Report) and Purple Innovation (PRPL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Purple Innovation has a Zacks Rank of #4 (Sell) 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 only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ACI currently has a forward P/E ratio of 12.10, while PRPL has a forward P/E of 29.99. We also note that ACI has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PRPL currently has a PEG ratio of 1.85.
Another notable valuation metric for ACI is its P/B ratio of 7.79. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PRPL has a P/B of 8.58.
These are just a few of the metrics contributing to ACI's Value grade of A and PRPL's Value grade of C.
ACI sticks out from PRPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACI is the better option right now.