7 Best Beaten Down Stocks to Invest In

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

52 Week Range: $19.25 – $23.88

Current Share Price: $19.62

Number of Hedge Fund Holders: 59

Market Capitalization as of September 3: $11.36 Billion

Albertsons Companies, Inc. (NYSE:ACI) is a consumer defensive company that operates food and drug stores. Its food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services.

It is one of the best beaten-down stocks to invest in as it is currently trading at a discount close to its 52-week lows on navigating competitive pressures and evolving consumer habits. Albertsons Companies, Inc. (NYSE:ACI) has since embarked on strategic initiatives in response to the negative market conditions, and it looks to reinvigorate its growth metrics.

The company is increasingly investing in its Customers for Life Strategy, and the digital and omnichannel capabilities are expected to continue driving year-over-year growth. Consequently, it delivered solid first-quarter results that affirmed the resiliency of its core business.

Adjusted earnings met expectations, coming in at $1.18 billion as the company registered a 1.4% increase in identical sales. Net sales totaled $24.3 billion from $24.1 billion a year ago. The increases were driven by a 14% increase in sales surge in the pharmacy sector as digital sales increased by 23%

During the same timeframe, Albertsons Companies, Inc. (NYSE:ACI) has kept a gross profit margin of 28.42%, showing its capacity to produce profits compared to its income. While trading at a price-to-earnings multiple of 8, Albertsons is trading at a low earnings multiple relative to its peers, affirming potential undervaluation.

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.