12 Most Promising Mid-Cap Consumer Staples Stocks Under $100

8. Albertsons Companies (NYSE:ACI)

Sector/Industry: Consumer Staples (Grocery Stores)

Share Price: $16.66

Potential Upside: 33.7%

Number of Hedge Fund Holders: 40

Albertsons Companies (NYSE:ACI) is one of the most promising mid-cap consumer staples stocks under $100.

On December 31, Joe Feldman from Telsey Advisory reaffirmed his outperform rating for Albertsons Companies (NYSE:ACI), with a target price of $24. As per Feldman’s estimates, the stock now offers an upside potential of over 44%.

The analyst has forecasted over $1 billion in adjusted EBITDA based on 2.5% growth in identical store sales. He also projected an adjusted EPS of $0.68 amid easing inflation, elevating demand for private brands and digital product offerings. Feldman noted that the financial impact of such factors will be offset to some extent by cash outlays on pricing, workforce, and technology. However, there is enough reason for him to remain optimistic about the pharmacy business.

Feldman also noted some encouraging industry-wide growth figures across other relevant areas, such as low-single digit increments in the broader grocery industry and 2%-3% growth in U.S. Food & Beverages retail sales. This leads to a promising outlook on relevant industries.

On December 29, RBC Capital analyst Steven Shemesh also reaffirmed his Outperform rating on Albertsons Companies (NYSE:ACI). Shemesh has estimated a target price of $21, which gives an upside of over 26% from the prevailing level. Shemesh believes that the stock currently offers a huge discount, trading at a 4.5x forward adjusted EBITDA multiple.

Albertsons Companies (NYSE:ACI) is amongst the largest companies within the food and drug retailing business in the United States. Through their stores, they sell various types of products including beauty care, groceries, pharmacy, and general merchandise. They also operate several fuel stations, pharmacies, coffee shops, and distribution facilities under different banners.