Back to top

Image: Bigstock

Is AllianceBernstein (AB) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is AllianceBernstein (AB - Free Report) . AB 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 11.31, which compares to its industry's average of 12.05. AB's Forward P/E has been as high as 12.30 and as low as 10.12, with a median of 11.03, all within the past year.

We should also highlight that AB has a P/B ratio of 1.87. The P/B ratio is used to compare a stock's market value with 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 1.91. Over the past year, AB's P/B has been as high as 1.91 and as low as 1.49, with a median of 1.65.

Finally, investors will want to recognize that AB has a P/CF ratio of 12.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AB's P/CF compares to its industry's average P/CF of 13.68. Over the past year, AB's P/CF has been as high as 12.95 and as low as 10.69, with a median of 11.87.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AllianceBernstein is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AB feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AllianceBernstein Holding L.P. (AB) - free report >>