Back to top

Is AllianceBernstein (AB) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on 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 P/E ratio of 11.53 right now. For comparison, its industry sports an average P/E of 12.43. Over the past year, AB's Forward P/E has been as high as 12.30 and as low as 10.12, with a median of 11.07.

Investors should also recognize that AB has a P/B ratio of 1.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.96. Within the past 52 weeks, AB's P/B has been as high as 1.95 and as low as 1.49, with a median of 1.66.

Finally, investors will want to recognize that AB has a P/CF ratio of 12.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.56. Within the past 12 months, AB's P/CF has been as high as 12.95 and as low as 10.80, with a median of 11.94.

These are just a handful of the figures considered in AllianceBernstein's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AB is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

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

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

More from Zacks Tale of the Tape

You May Like