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ACI vs. KMB: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Albertsons Companies, Inc. (ACI - Free Report) or Kimberly-Clark (KMB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Kimberly-Clark 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 just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ACI currently has a forward P/E ratio of 6.80, while KMB has a forward P/E of 22.73. We also note that ACI has a PEG ratio of 1.26. 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. KMB currently has a PEG ratio of 4.92.
Another notable valuation metric for ACI is its P/B ratio of 2.49. 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. By comparison, KMB has a P/B of 73.78.
These metrics, and several others, help ACI earn a Value grade of A, while KMB has been given a Value grade of D.
ACI sticks out from KMB 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 vs. KMB: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Albertsons Companies, Inc. (ACI - Free Report) or Kimberly-Clark (KMB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Albertsons Companies, Inc. has a Zacks Rank of #2 (Buy), while Kimberly-Clark 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 just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ACI currently has a forward P/E ratio of 6.80, while KMB has a forward P/E of 22.73. We also note that ACI has a PEG ratio of 1.26. 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. KMB currently has a PEG ratio of 4.92.
Another notable valuation metric for ACI is its P/B ratio of 2.49. 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. By comparison, KMB has a P/B of 73.78.
These metrics, and several others, help ACI earn a Value grade of A, while KMB has been given a Value grade of D.
ACI sticks out from KMB in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACI is the better option right now.