Yahoo Finance Are Investors Undervaluing AllianceBernstein (AB) 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 the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is AllianceBernstein (AB). AB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.57, which compares to its industry's average of 14.88. Over the past 52 weeks, AB's Forward P/E has been as high as 12.69 and as low as 9.62, with a median of 10.97.
AB is also sporting a PEG ratio of 0.63. 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. AB's industry has an average PEG of 0.86 right now. Over the past 52 weeks, AB's PEG has been as high as 4.42 and as low as 0.60, with a median of 1.11.
Another notable valuation metric for AB is its P/B ratio of 1.85. The P/B ratio is used to compare a stock's market value with 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 3.04. Within the past 52 weeks, AB's P/B has been as high as 2.01 and as low as 1.48, with a median of 1.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.92. This compares to its industry's average P/S of 2.61.
Finally, our model also underscores that AB has a P/CF ratio of 14.21. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.07. AB's P/CF has been as high as 37.57 and as low as 12.82, with a median of 14.83, all within the past year.
Investors could also keep in mind Affiliated Managers Group (AMG), an Financial - Investment Management stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Affiliated Managers Group is currently trading with a Forward P/E ratio of 7.08 while its PEG ratio sits at 0.54. Both of the company's metrics compare favorably to its industry's average P/E of 14.88 and average PEG ratio of 0.86.
Over the past year, AMG's P/E has been as high as 8.28, as low as 6.20, with a median of 7.08; its PEG ratio has been as high as 1.01, as low as 0.53, with a median of 1.11 during the same time period.
Additionally, Affiliated Managers Group has a P/B ratio of 1.16 while its industry's price-to-book ratio sits at 3.04. For AMG, this valuation metric has been as high as 1.34, as low as 0.95, with a median of 1.15 over the past year.
These are just a handful of the figures considered in AllianceBernstein and Affiliated Managers Group'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 AB and AMG is an impressive value stock right now.
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AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
