Albertsons: Failed Kroger Deal Fallout Creates An Attractive Entry Point
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IWA Research1.8K FollowersFollow5ShareSavePlay(15min)CommentsSummaryAlbertsons Companies is rated a Buy, supported by robust cash flows, digital/pharma expansion, and a major cost-savings program amid competitive and macro headwinds.ACI trades at sector-low valuation multiples, with a ~3.5% dividend yield and a massive buyback program that was recently accelerated and extended.Private-label penetration is targeted to rise to 30%, driving margin improvements and reinforcing ACI's competitive positioning.Execution risks persist from ongoing lawsuits, political uncertainty, Cerberus influence, and intensifying competition, but current risk-reward is attractive.JHVEPhoto/iStock Editorial via Getty Images Introduction & Financials Albertsons Companies (ACI) is currently trading at some of their lowest levels since going public, marked by a failed merger, lawsuits and macro uncertainty, but offering what seems to be a compelling opportunity.This article was written byIWA Research1.8K FollowersFollowAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ACI, KR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You