11 Best Retail Stocks to Buy Right Now

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

Number of Hedge Fund Holders: 70

Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets, Acme, Carrs, and more.

In a report released on April 16, Steven Shemesh from RBC Capital maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) and set a $23.00 price target. Albertsons Companies, Inc. (NYSE:ACI) also reported strong financial performance across all metrics, with 2024 results ahead of its expectations and guidance. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast. Its adjusted EBITDA grew 18% in 2024, while its adjusted net EBITDA margin of 41% expanded more than 300 basis points.

These trends reflect the inherent leverage in Albertsons Companies, Inc.’s (NYSE:ACI) software model. The company’s cash flow generation also remains strong, with cash flow from operating activities reaching $359 million in 2024, more than double the previous year.