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Albertsons Companies, Inc. (ACI) Moves 9.6% Higher: Will This Strength Last?

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Albertsons Companies, Inc. (ACI - Free Report) shares rallied 9.6% in the last trading session to close at $33.08. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 32.5% gain over the past four weeks.

Shares of notable grocery chains got a boost following Costco’s (COST - Free Report) stellar sales results for the month of August, and Albertsons Companies was no exception. With food-at-home consumption trend here to stay for a while, thanks to the remote work scenario, industry experts see major upside potential for grocery retailers owing to the demand for fresh ingredients and meals.

Well, Albertsons Companies has been focusing on enhancing in-store experience, accelerating omni-channel capabilities, driving productivity, and expanding fresh and Own Brands offerings. The company has started rolling out ready-to-eat, ready-to-heat, and ready-to-cook meals program, and expects the same to be available in approximately 500 stores by the end of fiscal 2021.

Albertsons Companies has been taking steps to make grocery shopping more convenient, and the launch of the Deals & Delivery app, "Albertsons for U" loyalty program, and FreshPass subscription service reflects the same.

This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -30%. Revenues are expected to be $15.82 billion, up 0.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Albertsons Companies, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ACI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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