Yahoo Finance Should Value Investors Buy AllianceBernstein (AB) Stock?
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.
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 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.
AllianceBernstein (AB) is a stock many investors are watching right now. AB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that AB has a P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus 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 2.73. Within the past 52 weeks, AB's P/B has been as high as 3.13 and as low as 2.07, with a median of 2.69.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AB has a P/S ratio of 0.88. This compares to its industry's average P/S of 2.47.
Finally, investors should note that AB has a P/CF ratio of 29.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 31.24. Within the past 12 months, AB's P/CF has been as high as 33.45 and as low as 9.28, with a median of 11.77.
Investors could also keep in mind Victory Capital Holdings (VCTR), an Financial - Investment Management stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Victory Capital Holdings is currently trading with a Forward P/E ratio of 6.43 while its PEG ratio sits at 2.57. Both of the company's metrics compare favorably to its industry's average P/E of 13.77 and average PEG ratio of 0.87.
VCTR's Forward P/E has been as high as 7.19 and as low as 4.69, with a median of 5.83. During the same time period, its PEG ratio has been as high as 2.87, as low as 0.48, with a median of 2.02.
Furthermore, Victory Capital Holdings holds a P/B ratio of 1.83 and its industry's price-to-book ratio is 2.73. VCTR's P/B has been as high as 2.62, as low as 1.49, with a median of 1.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AllianceBernstein and Victory Capital Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AB and VCTR feels like a great value stock at the moment.
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AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report
Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
