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Albertsons Companies, Inc. (ACI) Gains As Market Dips: What You Should Know

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Albertsons Companies, Inc. (ACI - Free Report) closed the most recent trading day at $30.63, moving +1.66% from the previous trading session. This change outpaced the S&P 500's 0.87% loss on the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the company had lost 11.67% over the past month. This has lagged the Consumer Staples sector's gain of 0.88% and the S&P 500's gain of 0.7% in that time.

Investors will be hoping for strength from Albertsons Companies, Inc. as it approaches its next earnings release. The company is expected to report EPS of $0.55, down 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.96 billion, up 3.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $69.78 billion, which would represent changes of -20.06% and +0.12%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Albertsons Companies, Inc.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Albertsons Companies, Inc. is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Albertsons Companies, Inc. has a Forward P/E ratio of 11.62 right now. Its industry sports an average Forward P/E of 20.33, so we one might conclude that Albertsons Companies, Inc. is trading at a discount comparatively.

It is also worth noting that ACI currently has a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Products - Staples industry currently had an average PEG ratio of 3.21 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ACI in the coming trading sessions, be sure to utilize Zacks.com.


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