10 Cheap Retail Stocks to Buy According to Analysts

2. Albertsons Companies Inc (NYSE:ACI)

Forward P/E: 7.85

Analyst Upside Potential as of September 23, 2024: 29.07%

Number of Hedge Fund Holders as of Q2 2024: 59

Albertsons (NYSE:ACI) is a food and drug retailer in the US that specializes in operating retail stores. It sells general merchandise, grocery items, health and beauty care products, fuel, pharmacy, and other items and services through its brick-and-mortar stores and digital channels. It operates around 2.269 stores across 34 stores in the US under 20 banners, including Albertsons, Vons, Randalls, Carrs, Acme, Star Market, Market Street, Kings Food Markets, Haggen, and others.

Albertsons (NYSE:ACI) also operates around 1,725 pharmacies, 402 fuel centers, 1,336 in-store branded coffee shops, 22 dedicated distribution centers, 19 manufacturing facilities, and a number of other digital platforms. Its brand portfolio spans Open Nature, Signature Care, Signature SELECT, Primo Tabglio, Signature Cafe, Signature Reserve, and others.

Albertsons (NYSE:ACI) reported net sales of $24.3 billion in Q1 2024, experiencing a slight increase from $24.1 billion in the previous year. This was driven by a 1.4% increase in identical sales. The company is making substantial progress in its online presence, with digital sales growing by 23%.

In addition, Albertsons (NYSE:ACI) is improving its financials and liquidity, with cash growing to $291.1 million and decreasing debt. It also invested $543 million in CAPEX, opening a new location and remodeling 17 store locations in the process. Q1 2024 also saw increased investment in the company’s Customers for Life strategy and the omnichannel and digital capabilities to support it. The Customer for Life strategy places customers at the center of all its operations, driving growth in loyalty members by launching its simplified “for U” loyalty program.

In the second quarter of 2024, 59 hedge funds had stakes in Albertsons Companies, Inc. (NYSE:ACI). As of Q2 2024, Stephen Feinberg’s Cerberus Capital Management is the top shareholder in the company and has a position worth $3 billion.