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Should Value Investors Buy Albertsons Companies, Inc. (ACI) Stock?

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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.

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 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, Inc. (ACI - Free Report) . ACI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.82, while its industry has an average P/E of 18.84. Over the past year, ACI's Forward P/E has been as high as 8.60 and as low as 7.14, with a median of 7.83.

Investors should also recognize that ACI has a P/B ratio of 4.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 13.04. Over the past 12 months, ACI's P/B has been as high as 6.46 and as low as 4.17, with a median of 4.93.

These are just a handful of the figures considered in Albertsons Companies, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACI is an impressive value stock right now.


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