Is Albertsons Companies, Inc. (ACI) a Great Value Stock Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Albertsons Companies, Inc. (ACI). ACI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.44, while its industry has an average P/E of 23.71. ACI's Forward P/E has been as high as 10.80 and as low as 5.35, with a median of 8.48, all within the past year.
Investors should also note that ACI holds a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACI's industry currently sports an average PEG of 1.94. ACI's PEG has been as high as 0.90 and as low as 0.45, with a median of 0.75, all within the past year.
Finally, investors should note that ACI has a P/CF ratio of 4.05. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ACI's P/CF compares to its industry's average P/CF of 15.38. Over the past 52 weeks, ACI's P/CF has been as high as 4.09 and as low as 2.15, with a median of 2.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Albertsons Companies, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACI feels like a great value stock at the moment.
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