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Are Investors Undervaluing Albertsons Companies (ACI) Right Now?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now 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 is trading with a P/E ratio of 6.86, which compares to its industry's average of 19.39. Over the past year, ACI's Forward P/E has been as high as 12.87 and as low as 6.73, with a median of 9.34.
ACI is also sporting a PEG ratio of 1.27. 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 industry currently sports an average PEG of 1.81. Within the past year, ACI's PEG has been as high as 1.93 and as low as 1.25, with a median of 1.51.
Value investors will likely look at more than just these metrics, but the above data helps show that Albertsons Companies is likely undervalued currently. And when considering the strength of its earnings outlook, ACI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Albertsons Companies (ACI) Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now 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 is trading with a P/E ratio of 6.86, which compares to its industry's average of 19.39. Over the past year, ACI's Forward P/E has been as high as 12.87 and as low as 6.73, with a median of 9.34.
ACI is also sporting a PEG ratio of 1.27. 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 industry currently sports an average PEG of 1.81. Within the past year, ACI's PEG has been as high as 1.93 and as low as 1.25, with a median of 1.51.
Value investors will likely look at more than just these metrics, but the above data helps show that Albertsons Companies is likely undervalued currently. And when considering the strength of its earnings outlook, ACI sticks out at as one of the market's strongest value stocks.