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Albertsons Companies (ACI) Likely to Sustain Bull Run in 2022
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The year 2022 might be a bit challenging for the stock market, thanks to rising inflation and supply chain bottlenecks that may decelerate the speed of the economic recovery, at least in the first half. So, you need to be smart when it comes to investment. The right choice of stock may fetch you higher returns even amid changing market dynamics. We present you one such stock, Albertsons Companies, Inc. (ACI - Free Report) , that looks well-poised heading into the new year, given its sound fundamentals and growth efforts.
Amid a tough operating environment, this Boise, ID-based company has made multiple changes to its business model to adapt and stay relevant. Shares of this food and drug retailer in the United States have climbed 72.4% in the past year against the industry’s decline of 30.6%. There is a likelihood that Albertsons Companies with a long-term earnings growth rate of 8% can attain new highs. A VGM Score of A highlights this Zacks Rank #1 (Strong Buy) stock’s upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
This Bull Run Has Momentum
Albertsons Companies’ focus on providing efficient in-store services, enhancing digital and omni-channel capabilities, and increasing productivity has been contributing to its upbeat performance. The company’s decent performance continued in third-quarter fiscal 2021 as well. The quarter marked the third straight positive sales and earnings surprise, wherein both the top and the bottom lines improved year over year.
Efforts to boost assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company’s right assortment in each local market, loyalty program, and ease of checkout through frictionless and contactless payments have been aiding in attracting customers. The company, through its “just for U” loyalty program, has been acquiring new customers and retaining old members as well as incentivizing them to spend more and buy more often. During the third quarter, membership increased 17% year over year to reach 28 million members.
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Albertsons Companies’ Own Brands products resonate well with customers. The company under its Own Brands portfolio offers more than 13,000 high-quality products at attractive price points and remains committed to bringing more innovative products to shoppers. We believe that the company’s private-label offerings are expected to do well in the quarters ahead. During the third quarter, the company continued to introduce Own Brands across all its banners. Notably, sales penetration increased about 15 basis points to 25.1% from the year-ago period.
The company has been directing resources toward expanding digital and omni-channel capabilities in order to better engage with members and provide them a convenient way to shop, whether in-store, curbside or at home. To this end, the company’s unified mobile application, digital wallet, AI chat capability, and expanded self-checkout installations enhance the customer shopping experience. Albertsons Companies’ third-quarter digital sales rose 9% year on year and 234% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to 1,930 locations and offered delivery services across more than 2,000 stores.
Dollar Tree, which operates discount variety retail stores, carries a Zacks Rank #2 (Buy). The company has an expected EPS growth rate of 12.2% for three-five years.
The Zacks Consensus Estimate for Dollar Tree’s current financial year sales suggests growth of 3.4% from the year-ago period. DLTR has a trailing four-quarter earnings surprise of 8.8%, on average.
Sprouts Farmers, which offers fresh, natural, and organic food products in the United States, carries a Zacks Rank #2. Shares of SFM have risen 22.1% in the past six months.
Sprouts Farmers has a trailing four-quarter earnings surprise of 29.9%, on average. The company reported an earnings surprise of 40% in the last reported quarter.
Performance Food, which markets and distributes food and food-related products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for Performance Food’s current financial year sales and EPS suggests growth of 66.5% and 88.9%, respectively, from the year-ago period. PFGC has an expected EPS growth rate of 15% for three-five years.
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Albertsons Companies (ACI) Likely to Sustain Bull Run in 2022
The year 2022 might be a bit challenging for the stock market, thanks to rising inflation and supply chain bottlenecks that may decelerate the speed of the economic recovery, at least in the first half. So, you need to be smart when it comes to investment. The right choice of stock may fetch you higher returns even amid changing market dynamics. We present you one such stock, Albertsons Companies, Inc. (ACI - Free Report) , that looks well-poised heading into the new year, given its sound fundamentals and growth efforts.
Amid a tough operating environment, this Boise, ID-based company has made multiple changes to its business model to adapt and stay relevant. Shares of this food and drug retailer in the United States have climbed 72.4% in the past year against the industry’s decline of 30.6%. There is a likelihood that Albertsons Companies with a long-term earnings growth rate of 8% can attain new highs. A VGM Score of A highlights this Zacks Rank #1 (Strong Buy) stock’s upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
This Bull Run Has Momentum
Albertsons Companies’ focus on providing efficient in-store services, enhancing digital and omni-channel capabilities, and increasing productivity has been contributing to its upbeat performance. The company’s decent performance continued in third-quarter fiscal 2021 as well. The quarter marked the third straight positive sales and earnings surprise, wherein both the top and the bottom lines improved year over year.
Efforts to boost assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company’s right assortment in each local market, loyalty program, and ease of checkout through frictionless and contactless payments have been aiding in attracting customers. The company, through its “just for U” loyalty program, has been acquiring new customers and retaining old members as well as incentivizing them to spend more and buy more often. During the third quarter, membership increased 17% year over year to reach 28 million members.
Albertsons Companies’ Own Brands products resonate well with customers. The company under its Own Brands portfolio offers more than 13,000 high-quality products at attractive price points and remains committed to bringing more innovative products to shoppers. We believe that the company’s private-label offerings are expected to do well in the quarters ahead. During the third quarter, the company continued to introduce Own Brands across all its banners. Notably, sales penetration increased about 15 basis points to 25.1% from the year-ago period.
The company has been directing resources toward expanding digital and omni-channel capabilities in order to better engage with members and provide them a convenient way to shop, whether in-store, curbside or at home. To this end, the company’s unified mobile application, digital wallet, AI chat capability, and expanded self-checkout installations enhance the customer shopping experience. Albertsons Companies’ third-quarter digital sales rose 9% year on year and 234% on a two-year stacked basis. The company expanded its Drive Up & Go curbside pickup service to 1,930 locations and offered delivery services across more than 2,000 stores.
3 Other Stocks to Consider
Here are three better-ranked stocks — Dollar Tree (DLTR - Free Report) , Sprouts Farmers Market (SFM - Free Report) and Performance Food Group Company (PFGC - Free Report) .
Dollar Tree, which operates discount variety retail stores, carries a Zacks Rank #2 (Buy). The company has an expected EPS growth rate of 12.2% for three-five years.
The Zacks Consensus Estimate for Dollar Tree’s current financial year sales suggests growth of 3.4% from the year-ago period. DLTR has a trailing four-quarter earnings surprise of 8.8%, on average.
Sprouts Farmers, which offers fresh, natural, and organic food products in the United States, carries a Zacks Rank #2. Shares of SFM have risen 22.1% in the past six months.
Sprouts Farmers has a trailing four-quarter earnings surprise of 29.9%, on average. The company reported an earnings surprise of 40% in the last reported quarter.
Performance Food, which markets and distributes food and food-related products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for Performance Food’s current financial year sales and EPS suggests growth of 66.5% and 88.9%, respectively, from the year-ago period. PFGC has an expected EPS growth rate of 15% for three-five years.