Subscribe to Entrepreneur for $5
Subscribe

Is Albertsons Companies, Inc. (ACI) Stock Undervalued 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...

By
This story originally appeared on Zacks

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

- Zacks

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.

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.

Albertsons Companies, Inc. (ACI) is a stock many investors are watching right now. ACI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.83. This compares to its industry's average Forward P/E of 21.11. ACI's Forward P/E has been as high as 14.98 and as low as 5.35, with a median of 9.78, all within the past year.

We also note that ACI holds a PEG ratio of 1.07. 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. ACI's PEG compares to its industry's average PEG of 1.74. Over the last 12 months, ACI's PEG has been as high as 1.25 and as low as 0.45, with a median of 0.82.

Finally, our model also underscores that ACI has a P/CF ratio of 7.32. 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 13.95. Over the past 52 weeks, ACI's P/CF has been as high as 8.31 and as low as 2.15, with a median of 3.66.

These are only a few of the key metrics included in Albertsons Companies, Inc.'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, ACI looks like an impressive value stock at the moment.



Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Albertsons Companies, Inc. (ACI): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research