Are These Consumer Staples Stocks Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is Albertsons Companies (ACI). ACI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.09 right now. For comparison, its industry sports an average P/E of 21.96. ACI's Forward P/E has been as high as 66 and as low as 5.35, with a median of 10.50, all within the past year.
Finally, our model also underscores that ACI has a P/CF ratio of 6.10. 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 11.57. ACI's P/CF has been as high as 8.81 and as low as 2.34, with a median of 6.03, all within the past year.
Another great Consumer Products - Staples stock you could consider is Franchise Group (FRG), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Franchise Group currently holds a Forward P/E ratio of 9.27, and its PEG ratio is 0.62. In comparison, its industry sports average P/E and PEG ratios of 21.96 and 1.26.
Over the past year, FRG's P/E has been as high as 14.14, as low as 8.77, with a median of 10.21; its PEG ratio has been as high as 0.94, as low as 0.58, with a median of 1.01 during the same time period.
Franchise Group sports a P/B ratio of 2.93 as well; this compares to its industry's price-to-book ratio of 3.98. In the past 52 weeks, FRG's P/B has been as high as 4.22, as low as 2.23, with a median of 3.11.
These are only a few of the key metrics included in Albertsons Companies and Franchise Group 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 FRG look like an impressive value stock at the moment.
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Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report
Franchise Group, Inc. (FRG) : Free Stock Analysis Report
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