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Is Albertsons Companies, Inc. (ACI) Stock Undervalued Right Now?

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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.

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 - Free Report) 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.


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