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Albertsons Companies, Inc. (ACI) Gains As Market Dips: What You Should Know

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Albertsons Companies, Inc. (ACI - Free Report) closed the most recent trading day at $21.37, moving +0.61% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 1.18%.

Heading into today, shares of the company had gained 4.73% over the past month, outpacing the Consumer Staples sector's loss of 2.23% and lagging the S&P 500's gain of 7.18% in that time.

Albertsons Companies, Inc. will be looking to display strength as it nears its next earnings release. On that day, Albertsons Companies, Inc. is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.88 billion, up 2.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $78.92 billion, which would represent changes of -16.91% and +1.64%, respectively, from the prior year.

Any recent changes to analyst estimates for Albertsons Companies, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Albertsons Companies, Inc. is currently a Zacks Rank #4 (Sell).

Investors should also note Albertsons Companies, Inc.'s current valuation metrics, including its Forward P/E ratio of 7.58. For comparison, its industry has an average Forward P/E of 17.39, which means Albertsons Companies, Inc. is trading at a discount to the group.

It is also worth noting that ACI currently has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACI's industry had an average PEG ratio of 2.44 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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