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ACI vs. LRLCY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Albertsons Companies, Inc. (ACI - Free Report) and L'Oreal SA (LRLCY - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 L'Oreal SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ACI likely has seen a stronger improvement to its earnings outlook than LRLCY has recently. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACI currently has a forward P/E ratio of 9.20, while LRLCY has a forward P/E of 30.75. We also note that ACI has a PEG ratio of 3.00. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LRLCY currently has a PEG ratio of 5.60.
Another notable valuation metric for ACI is its P/B ratio of 3.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LRLCY has a P/B of 6.96.
Based on these metrics and many more, ACI holds a Value grade of A, while LRLCY has a Value grade of D.
ACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ACI is likely the superior value option right now.
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ACI vs. LRLCY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Albertsons Companies, Inc. (ACI - Free Report) and L'Oreal SA (LRLCY - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 L'Oreal SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ACI likely has seen a stronger improvement to its earnings outlook than LRLCY has recently. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACI currently has a forward P/E ratio of 9.20, while LRLCY has a forward P/E of 30.75. We also note that ACI has a PEG ratio of 3.00. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LRLCY currently has a PEG ratio of 5.60.
Another notable valuation metric for ACI is its P/B ratio of 3.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LRLCY has a P/B of 6.96.
Based on these metrics and many more, ACI holds a Value grade of A, while LRLCY has a Value grade of D.
ACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ACI is likely the superior value option right now.