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Is Aluminum (ACH) a Great Value Stock Right Now?

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Zacks Equity Research
·2-min read
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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.

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 Aluminum (ACH). ACH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 20.99 right now. For comparison, its industry sports an average P/E of 40.15. Over the past 52 weeks, ACH's Forward P/E has been as high as 60.81 and as low as 20.24, with a median of 35.13.

Investors should also recognize that ACH has a P/B ratio of 0.52. 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. This stock's P/B looks attractive against its industry's average P/B of 1.51. Over the past 12 months, ACH's P/B has been as high as 0.64 and as low as 0.31, with a median of 0.41.

Finally, investors will want to recognize that ACH has a P/CF ratio of 6.08. 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 22.27. ACH's P/CF has been as high as 6.08 and as low as 0.04, with a median of 2.44, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Aluminum is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACH feels like a great value stock at the moment.


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