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Is AllianceBernstein (AB) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 AllianceBernstein (AB - Free Report) . AB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.44. This compares to its industry's average Forward P/E of 12.70. Over the last 12 months, AB's Forward P/E has been as high as 12.79 and as low as 4.90, with a median of 10.62.
Investors will also notice that AB has a PEG ratio of 1.60. 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. AB's industry currently sports an average PEG of 1.70. AB's PEG has been as high as 2.15 and as low as 0.32, with a median of 1.61, all within the past year.
Investors should also recognize that AB has a P/B ratio of 1.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AB's current P/B looks attractive when compared to its industry's average P/B of 1.96. AB's P/B has been as high as 2.27 and as low as 0.93, with a median of 1.88, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AB has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.81.
Finally, investors should note that AB has a P/CF ratio of 11.05. 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. AB's P/CF compares to its industry's average P/CF of 36.66. Over the past 52 weeks, AB's P/CF has been as high as 14.38 and as low as 5.88, with a median of 12.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AllianceBernstein is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AB feels like a great value stock at the moment.
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Is AllianceBernstein (AB) Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 AllianceBernstein (AB - Free Report) . AB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.44. This compares to its industry's average Forward P/E of 12.70. Over the last 12 months, AB's Forward P/E has been as high as 12.79 and as low as 4.90, with a median of 10.62.
Investors will also notice that AB has a PEG ratio of 1.60. 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. AB's industry currently sports an average PEG of 1.70. AB's PEG has been as high as 2.15 and as low as 0.32, with a median of 1.61, all within the past year.
Investors should also recognize that AB has a P/B ratio of 1.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AB's current P/B looks attractive when compared to its industry's average P/B of 1.96. AB's P/B has been as high as 2.27 and as low as 0.93, with a median of 1.88, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AB has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.81.
Finally, investors should note that AB has a P/CF ratio of 11.05. 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. AB's P/CF compares to its industry's average P/CF of 36.66. Over the past 52 weeks, AB's P/CF has been as high as 14.38 and as low as 5.88, with a median of 12.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AllianceBernstein is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AB feels like a great value stock at the moment.