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Are Investors Undervaluing Albertsons Companies (ACI) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Albertsons Companies (ACI - Free Report) . ACI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.86. This compares to its industry's average Forward P/E of 16.30. ACI's Forward P/E has been as high as 66 and as low as 6.86, with a median of 10.39, all within the past year.
Investors will also notice that ACI has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACI's PEG compares to its industry's average PEG of 1.46. Over the past 52 weeks, ACI's PEG has been as high as 8.25 and as low as 1.01, with a median of 1.53.
We should also highlight that ACI has a P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.34. Within the past 52 weeks, ACI's P/B has been as high as 8.61 and as low as 2.48, with a median of 5.07.
Finally, investors will want to recognize that ACI has a P/CF ratio of 2.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.10. Within the past 12 months, ACI's P/CF has been as high as 8.81 and as low as 2.88, with a median of 4.59.
ARKO (ARKO - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ARKO is a # 2 (Buy) stock with a Value grade of A.
ARKO also has a P/B ratio of 4.49 compared to its industry's price-to-book ratio of 3.34. Over the past year, its P/B ratio has been as high as 5.46, as low as 3.72, with a median of 4.53.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Albertsons Companies and ARKO are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACI and ARKO feels like a great value stock at the moment.
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Are Investors Undervaluing Albertsons Companies (ACI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Albertsons Companies (ACI - Free Report) . ACI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.86. This compares to its industry's average Forward P/E of 16.30. ACI's Forward P/E has been as high as 66 and as low as 6.86, with a median of 10.39, all within the past year.
Investors will also notice that ACI has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACI's PEG compares to its industry's average PEG of 1.46. Over the past 52 weeks, ACI's PEG has been as high as 8.25 and as low as 1.01, with a median of 1.53.
We should also highlight that ACI has a P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.34. Within the past 52 weeks, ACI's P/B has been as high as 8.61 and as low as 2.48, with a median of 5.07.
Finally, investors will want to recognize that ACI has a P/CF ratio of 2.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.10. Within the past 12 months, ACI's P/CF has been as high as 8.81 and as low as 2.88, with a median of 4.59.
ARKO (ARKO - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ARKO is a # 2 (Buy) stock with a Value grade of A.
ARKO also has a P/B ratio of 4.49 compared to its industry's price-to-book ratio of 3.34. Over the past year, its P/B ratio has been as high as 5.46, as low as 3.72, with a median of 4.53.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Albertsons Companies and ARKO are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACI and ARKO feels like a great value stock at the moment.