Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now

3. 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, Bill Kirk from Roth MKM reiterated a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) and set a price target of $23.00.

Robert Ohmes, an analyst from Bank of America Securities, reiterated a Hold rating on the company on the same day, highlighting that margin pressures are likely to continue due to Albertsons Companies, Inc.’s (NYSE:ACI) ongoing investments in value, customer experience, and digital investments. However, he also said that these initiatives may hinder short-term upside only, positioning the company well for long-term growth. The analyst also highlighted that the company’s fiscal Q4 2024 adjusted EPS surpassed expectations, with pharmacy and digital sales experiencing notable growth.

Its e-commerce sector underwent a notable 24% growth for both fiscal Q4 and 2024, with first-party sales significantly surpassing third-party growth. In addition, Albertsons Companies, Inc.’s (NYSE:ACI) loyalty membership increased significantly by over 15% year over year, reaching more than 45 million members. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast and reflecting positive operations.

Longleaf Partners Fund stated the following regarding Albertsons Companies, Inc. (NYSE:ACI) in its Q1 2025 investor letter:

“Albertsons Companies, Inc. (NYSE:ACI) – US grocery retailer Albertsons was a contributor for the quarter. Albertsons was a new purchase in 2024, after we had followed the company and its predecessors for years. In an otherwise turbulent quarter, Albertsons stands out as a stable business that remains undervalued because it had fallen off the radar during a protracted deal process with Kroger that ultimately failed. The company should grow at a moderate pace and has plenty of financial firepower to repurchase shares, all while it has multiple strategic options (such as unlocking its real estate value and/or selling non-core markets) to realize value per share.”