7 Cheap Reliable Stocks to Invest In

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

Forward P/E: 7.79

Analysts’ Upside Potential: 30.22%

Number of Hedge Fund Holders: 59

Albertsons (NYSE:ACI) is a food and drug retailer in the US that operates retail stores selling 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. These include Albertsons, Vons, Randalls, Carrs, Acme, Star Market, Market Street, Kings Food Markets, Haggen, and others.

In addition, the company operates 1,336 in-store branded coffee shops, 1,725 pharmacies, 402 fuel centers, 19 manufacturing facilities, and several other digital platforms. Its brand portfolio includes Open Nature, Signature Care, Signature SELECT, Primo Tabglio, Signature Cafe, Signature Reserve, and others.

Albertsons (NYSE:ACI) ranks on our list of 7 cheap reliable stocks to invest in because of its several strategic initiatives in response to negative market conditions, highlighting its resilience. The company is looking to reinvigorate its growth metrics, and is increasingly investing in its Customers for Life Strategy. 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. It is also investing in its omnichannel and digital capabilities to drive continuous year-over-year growth.

The company is making substantial progress in its online presence, with digital sales growing by 23%. It is improving its liquidity and financials, with cash growing to $291.1 million and dwindling debt. Albertsons (NYSE:ACI) is also focusing attention on CAPEX, investing $543 million for the purpose. It opened a new location and remodeled 17 store locations in the process, ensuring increased customer engagement.

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 company’s top shareholder and has a position worth $3 billion, as per our database.