5 Best Defensive Stocks Under $50

In this article, we will look at the 5 best defensive stocks under $50. If you want to explore similar stocks that can help hedge against inflation and come relatively cheap, you can also read about the 10 Best Defensive Stocks Under $50.

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

Number of Hedge Fund Holders: 37

Share Price as of August 23: $28.17

Albertsons Companies, Inc. (NYSE:ACI) engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. As of August 23, the stock is trading at a P/E ratio of 10.21x and offers a forward dividend yield of 1.68%, which the company supports with free cash flows of $1.73 billion.

On July 26, Albertsons Companies, Inc. (NYSE:ACI) released its earnings report for the company’s fiscal first quarter of 2022. The company reported earnings per share of $0.84 and generated revenue of $23.31 billion, the latter up 9.60% year-over-year and ahead of the Wall Street consensus by $545.21 million. Albertsons Companies, Inc. (NYSE:ACI) also raised its full-year 2022 adjusted EPS view to a range between $2.80 and $2.95, up from its prior EPS view of a range between $2.70 and $2.85.

On July 28, Citi analyst Paul Lejuez revised his price target on Albertsons Companies, Inc. (NYSE:ACI) to $30 from $36 and reiterated a ‘Neutral’ rating on the shares. The analyst noted that the stock’s risk/reward ratio is balanced.

At the end of Q2 2022, 37 hedge funds held stakes in Albertsons Companies, Inc. (NYSE:ACI) worth $4.71 billion, compared to 39 positions in the preceding quarter with stakes worth $5.66 billion. As of June 30, Cerberus Capital Management owns nearly 152 million shares of Albertsons Companies, Inc. (NYSE:ACI) and is the top shareholder in the company. The investment covers 79.96% of Cerberus Capital Management’s 13F portfolio.