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Should Value Investors Buy Albertsons Companies (ACI) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Albertsons Companies (ACI - Free Report) . ACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.68. This compares to its industry's average Forward P/E of 19.09. Over the past year, ACI's Forward P/E has been as high as 12.48 and as low as 6.08, with a median of 8.72.

ACI is also sporting a PEG ratio of 1.24. 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 has an average PEG of 1.66 right now. Within the past year, ACI's PEG has been as high as 1.93 and as low as 1.13, with a median of 1.48.

Investors could also keep in mind Ahold (ADRNY - Free Report) , an Consumer Products - Staples stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Ahold is currently trading with a Forward P/E ratio of 12.79 while its PEG ratio sits at 2.70. Both of the company's metrics compare favorably to its industry's average P/E of 19.09 and average PEG ratio of 1.66.

Over the past year, ADRNY's P/E has been as high as 13.34, as low as 10.34, with a median of 11.69; its PEG ratio has been as high as 2.70, as low as 1.55, with a median of 1.48 during the same time period.

Furthermore, Ahold holds a P/B ratio of 2.14 and its industry's price-to-book ratio is 4.08. ADRNY's P/B has been as high as 2.16, as low as 1.53, with a median of 1.79 over the past 12 months.

These are only a few of the key metrics included in Albertsons Companies and Ahold strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ACI and ADRNY look like an impressive value stock at the moment.


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