10 Best Grocery Stocks To Invest In Now

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

Number of Hedge Fund Holders: 59

Albertsons Companies, Inc. (NYSE:ACI) ranks among the largest food and drug retailers in the U.S., operating over 2,269 stores across 34 states under well-known brands such as Albertsons, Safeway, and Vons. This extensive network solidifies its position as a major player in the grocery market.

Research firm Melius recently upgraded Albertsons Companies, Inc. (NYSE:ACI) from Hold to Buy, with a price target of $24. The analyst noted multiple favorable outcomes for the company, highlighting strong valuation and management despite uncertainties around a proposed merger with Kroger. Though skeptical of the merger’s completion, Melius projected a potential 43% upside for shareholders if it proceeds, with a payout of $27.25 per share.

For Q2, Albertsons Companies, Inc. (NYSE:ACI) reported adjusted EPS of $0.51, beating estimates of $0.48, and revenue of $18.6 billion, surpassing the forecasted $18.47 billion and up 1.6% year-over-year. Identical sales grew 2.5% annually, led by robust pharmacy sales, while digital sales surged by 24%, reflecting Albertsons’ strong omnichannel growth. In addition, adjusted EBITDA reached $900.6 million, or 4.9% of net sales, compared to $976.9 million, or 5.3%, in the previous year.