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Should Value Investors Buy Albertsons Companies (ACI) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Albertsons Companies (ACI - Free Report) . ACI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.29, which compares to its industry's average of 17.67. ACI's Forward P/E has been as high as 10.44 and as low as 7.46, with a median of 8.91, all within the past year.
We also note that ACI holds a PEG ratio of 1.66. 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 2.72. Over the past 52 weeks, ACI's PEG has been as high as 2.09 and as low as 0.93, with a median of 1.78.
Another valuation metric that we should highlight is ACI's P/B ratio of 3.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.06. Over the past 12 months, ACI's P/B has been as high as 4.06 and as low as 3.11, with a median of 3.56.
Ahold (ADRNY - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ADRNY is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Shares of Ahold currently hold a Forward P/E ratio of 12.51, and its PEG ratio is 1.57. In comparison, its industry sports average P/E and PEG ratios of 17.67 and 2.72.
ADRNY's Forward P/E has been as high as 14.34 and as low as 11.40, with a median of 12.65. During the same time period, its PEG ratio has been as high as 2.68, as low as 1.51, with a median of 1.90.
Additionally, Ahold has a P/B ratio of 2.26 while its industry's price-to-book ratio sits at 5.06. For ADRNY, this valuation metric has been as high as 2.39, as low as 1.78, with a median of 2.04 over the past year.
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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Should Value Investors Buy Albertsons Companies (ACI) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Albertsons Companies (ACI - Free Report) . ACI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.29, which compares to its industry's average of 17.67. ACI's Forward P/E has been as high as 10.44 and as low as 7.46, with a median of 8.91, all within the past year.
We also note that ACI holds a PEG ratio of 1.66. 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 2.72. Over the past 52 weeks, ACI's PEG has been as high as 2.09 and as low as 0.93, with a median of 1.78.
Another valuation metric that we should highlight is ACI's P/B ratio of 3.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.06. Over the past 12 months, ACI's P/B has been as high as 4.06 and as low as 3.11, with a median of 3.56.
Ahold (ADRNY - Free Report) may be another strong Consumer Products - Staples stock to add to your shortlist. ADRNY is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Shares of Ahold currently hold a Forward P/E ratio of 12.51, and its PEG ratio is 1.57. In comparison, its industry sports average P/E and PEG ratios of 17.67 and 2.72.
ADRNY's Forward P/E has been as high as 14.34 and as low as 11.40, with a median of 12.65. During the same time period, its PEG ratio has been as high as 2.68, as low as 1.51, with a median of 1.90.
Additionally, Ahold has a P/B ratio of 2.26 while its industry's price-to-book ratio sits at 5.06. For ADRNY, this valuation metric has been as high as 2.39, as low as 1.78, with a median of 2.04 over the past year.
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.