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Are Investors Undervaluing AllianceBernstein (AB) Right Now?
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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is AllianceBernstein (AB - Free Report) . AB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.46, while its industry has an average P/E of 16.44. Over the last 12 months, AB's Forward P/E has been as high as 12.15 and as low as 9.62, with a median of 10.65.
Investors will also notice that AB has a PEG ratio of 0.60. 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 has an average PEG of 0.94 right now. Over the last 12 months, AB's PEG has been as high as 4.42 and as low as 0.58, with a median of 0.73.
Another notable valuation metric for AB is its P/B ratio of 2.03. 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 3.58. Within the past 52 weeks, AB's P/B has been as high as 2.12 and as low as 1.48, with a median of 1.86.
Finally, we should also recognize that AB has a P/CF ratio of 10.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 29.42. Over the past year, AB's P/CF has been as high as 37.57 and as low as 9.93, with a median of 13.91.
These are only a few of the key metrics included in AllianceBernstein'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, AB looks like an impressive value stock at the moment.
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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is AllianceBernstein (AB - Free Report) . AB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.46, while its industry has an average P/E of 16.44. Over the last 12 months, AB's Forward P/E has been as high as 12.15 and as low as 9.62, with a median of 10.65.
Investors will also notice that AB has a PEG ratio of 0.60. 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 has an average PEG of 0.94 right now. Over the last 12 months, AB's PEG has been as high as 4.42 and as low as 0.58, with a median of 0.73.
Another notable valuation metric for AB is its P/B ratio of 2.03. 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 3.58. Within the past 52 weeks, AB's P/B has been as high as 2.12 and as low as 1.48, with a median of 1.86.
Finally, we should also recognize that AB has a P/CF ratio of 10.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 29.42. Over the past year, AB's P/CF has been as high as 37.57 and as low as 9.93, with a median of 13.91.
These are only a few of the key metrics included in AllianceBernstein'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, AB looks like an impressive value stock at the moment.