Top 15 Consumer Staples Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 52

Albertsons Companies, Inc. (NYSE:ACI) ranks among the top consumer staples stocks according to hedge funds. UBS reaffirmed its Neutral rating and $22 price target on Albertsons Companies, Inc. (NYSE:ACI) on July 7, ahead of the grocery retailer’s impending first-quarter earnings call on July 15.

Although it points out a number of significant obstacles the company faces, UBS expects Albertsons Companies, Inc. (NYSE:ACI) will highlight productivity gains. One of the main concerns, according to UBS analyst Mark Carden, is the growing industry pricing pressure. He said that the grocery retailer had already admitted that its price disparities had been too wide in certain areas.

The current market environment seems to be increasingly challenging as even rival Kroger stated on its first-quarter call that it had made investments to lower the prices of about 2,000 additional products. According to UBS, changing tariff conditions have also reduced the likelihood that retailers will hike grocery prices to counteract restrictions on general merchandise profitability.

With operations in 34 states under well-known brands like Vons, Safeway, and Albertsons, Albertsons Companies, Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States.