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

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Albertsons Companies, Inc. (ACI - Free Report) . ACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.29. This compares to its industry's average Forward P/E of 22.73. ACI's Forward P/E has been as high as 10.80 and as low as 5.35, with a median of 8.64, all within the past year.

ACI is also sporting a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACI's industry has an average PEG of 1.86 right now. Over the last 12 months, ACI's PEG has been as high as 0.90 and as low as 0.45, with a median of 0.77.

Finally, investors should note that ACI has a P/CF ratio of 4. 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 15.06. ACI's P/CF has been as high as 4.09 and as low as 2.15, with a median of 2.74, all within the past year.

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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