Demystifying Albertsons Companies: Insights From 6 Analyst Reviews

In the latest quarter, 6 analysts provided ratings for Albertsons Companies ACI, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Albertsons Companies, revealing an average target of $24.88, a high estimate of $27.25, and a low estimate of $23.00. Witnessing a positive shift, the current average has risen by 0.85% from the previous average price target of $24.67.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Albertsons Companies is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Albertsons Companies. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Albertsons Companies compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Albertsons Companies's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Albertsons Companies's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Albertsons Companies analyst ratings.

Unveiling the Story Behind Albertsons Companies

Albertsons is the second-largest conventional grocer in America, operating 2,271 stores under 24 banners in 34 states (as of the end of fiscal 2022). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 25% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 19 food production plants (as of the end of fiscal 2022). Albertsons is a top two grocer in two thirds of its major markets (as of early 2022, according to company data), and virtually all of its sales come from the United States. Narrow-moat Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.

Key Indicators: Albertsons Companies's Financial Health

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Albertsons Companies's remarkable performance in 3 months is evident. As of 30 November, 2023, the company achieved an impressive revenue growth rate of 2.22%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.95%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Albertsons Companies's ROE stands out, surpassing industry averages. With an impressive ROE of 15.24%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Albertsons Companies's ROA stands out, surpassing industry averages. With an impressive ROA of 1.37%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 5.83, Albertsons Companies faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.