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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.11 right now. For comparison, its industry sports an average P/E of 22.63. ACI’s Forward P/E has been as high as 14.98 and as low as 5.35, with a median of 9.90, all within the past year.
Investors should also note that ACI holds a PEG ratio of 1.18. 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 PEG compares to its industry’s average PEG of 1.86. ACI’s PEG has been as high as 1.25 and as low as 0.45, with a median of 0.83, all within the past year.
Finally, we should also recognize that ACI has a P/CF ratio of 8.52. 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 14.61. Within the past 12 months, ACI’s P/CF has been as high as 8.52 and as low as 2.15, with a median of 3.74.
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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