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Should Value Investors Buy AllianceBernstein (AB) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
AllianceBernstein (AB - Free Report) is a stock many investors are watching right now. AB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.84, while its industry has an average P/E of 12.83. Over the past year, AB's Forward P/E has been as high as 12.79 and as low as 4.90, with a median of 10.67.
AB is also sporting a PEG ratio of 0.70. 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. AB's PEG compares to its industry's average PEG of 1.32. AB's PEG has been as high as 2.60 and as low as 0.32, with a median of 1.88, all within the past year.
Another notable valuation metric for AB is its P/B ratio of 1.70. 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. This stock's P/B looks solid versus its industry's average P/B of 1.84. AB's P/B has been as high as 2.27 and as low as 0.93, with a median of 1.91, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AB has a P/S ratio of 0.73. This compares to its industry's average P/S of 2.09.
Finally, investors should note that AB has a P/CF ratio of 10.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.67. Over the past year, AB's P/CF has been as high as 14.38 and as low as 5.88, with a median of 12.58.
These are only a few of the key metrics included in AllianceBernstein's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AB looks like an impressive value stock at the moment.
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Should Value Investors Buy AllianceBernstein (AB) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
AllianceBernstein (AB - Free Report) is a stock many investors are watching right now. AB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.84, while its industry has an average P/E of 12.83. Over the past year, AB's Forward P/E has been as high as 12.79 and as low as 4.90, with a median of 10.67.
AB is also sporting a PEG ratio of 0.70. 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. AB's PEG compares to its industry's average PEG of 1.32. AB's PEG has been as high as 2.60 and as low as 0.32, with a median of 1.88, all within the past year.
Another notable valuation metric for AB is its P/B ratio of 1.70. 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. This stock's P/B looks solid versus its industry's average P/B of 1.84. AB's P/B has been as high as 2.27 and as low as 0.93, with a median of 1.91, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AB has a P/S ratio of 0.73. This compares to its industry's average P/S of 2.09.
Finally, investors should note that AB has a P/CF ratio of 10.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.67. Over the past year, AB's P/CF has been as high as 14.38 and as low as 5.88, with a median of 12.58.
These are only a few of the key metrics included in AllianceBernstein's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AB looks like an impressive value stock at the moment.