10 Best Department Store Stocks to Invest in

4. Albertsons Companies, Inc. (NYSE:ACI)

Number of Hedge Fund Holders: 70

Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets,  Acme, Carrs, and more.

On March 13, RBC Capital analyst Steven Shemesh raised the firm’s price target on Albertsons Companies, Inc. (NYSE:ACI) to $23 from $22, keeping an Outperform rating on the shares. The analyst told investors in a research note that the firm continues to believe in the margin opportunity.

Albertsons Companies, Inc. (NYSE:ACI) reported strong performance across all metrics, with 2024 results ahead of its expectations and guidance. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast. Its adjusted EBITDA grew 18% in 2024, while its adjusted net EBITDA margin of 41% expanded more than 300 basis points. These trends reflect the inherent leverage in Albertsons Companies, Inc.’s (NYSE:ACI) software model. Cash flow generation also remains strong for the company, with cash flow from operating activities reaching $359 million in 2024, more than double the previous year. It ranks fourth on our list of the best department store stocks to invest in.