In the world of finance, it's often said that volatility is the price you pay for performance. In the grocery store industry, Albertsons Companies (ACI) and Sprouts are two key players whose stock performance has been a subject of interest. Albertsons, with a substantial total revenue of $60.9B and an operating income of $1.6B, showcases a robust
financial health. However, it's worth noting that the company's probability of bankruptcy stands at 30.89%, a factor that adds to its volatility. On the other hand, the company's shares short prior month are at 14.4M, indicating a significant short interest, which could potentially lead to a short squeeze, thus increasing volatility. Therefore, investors need to weigh these factors carefully while considering these stocks. Many traders often overanalyze competition within the consumer staples distribution and retail sector. However, it's sensible to consider both Albertsons Companies and Sprouts Farmers as potential short-term investments. We will focus on the competitive aspects of both companies.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Albertsons Companies. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Albertsons Companies, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Albertsons Companies's Liquidity
Albertsons Companies
financial leverage refers to using borrowed capital as a funding source to finance Albertsons Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Albertsons Companies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Albertsons Companies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Albertsons Companies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Albertsons Companies's total debt and its cash.
Albertsons Companies Gross Profit
Albertsons Companies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Albertsons Companies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Albertsons Companies Gross Profit growth over the last 10 years. Please check Albertsons Companies'
gross profit and other
fundamental indicators for more details.
Is Albertsons Companies valued properly by the market?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Albertsons Companies revenue. Based on the latest financial disclosure, Albertsons Companies reported 60.9
B of revenue. This is 309.96% higher than that of the Consumer Staples Distribution & Retail sector and 103.7% higher than that of the
Consumer Staples industry.
The revenue for all United States stocks is significantly lower than that of the entity. As for Sprouts Farmers we see revenue of 6.84
B, which is 77.13% lower than that of the Consumer Staples
| Albertsons | 60.9 Billion |
| Sector | 9.43 Billion |
| Sprouts | 6.84 Billion |
A wise investor knows that volatility is as much a part of the market as buying and selling. In comparing the volatility of Albertsons Companies (ACI) and Sprouts, a couple of key data points stand out. Albertsons has a Beta of 0.33, indicating a lower volatility compared to the broader market. However, with a Kurtosis of 3.12, the company's returns have fatter tails and sharper peaks, meaning there's a higher probability of extreme outcomes. The company's 52-week high and low prices, $23.62 and $19.55 respectively, further underline this volatility. On the brighter side, Albertsons boasts a robust EBITDA of $1.64B and a healthy operating margin of 0.03%, which could potentially cushion the impact of any adverse market movements. .
Albertsons Companies has a good chance to finish above $21 in 2 months
Albertsons Companies Inc. (ACI) recently showcased a total risk alpha of -0.15, indicating potential for higher returns despite associated risks. This suggests effective risk management by the company, increasing the likelihood of its stock price exceeding $21 in the next two months. Albertsons' low volatility, with a skewness of -0.98 and kurtosis of 3.12, is noteworthy. Understanding
market volatility trends can aid investors in market timing. Using volatility indicators properly allows traders to gauge Albertsons' stock risk against market volatility during both bullish and bearish trends. The increased volatility in bear markets can affect Albertsons' stock price and stress investors as they see their shares' value decrease, often leading to portfolio rebalancing with diverse financial instruments.
In conclusion, despite the recent plunge, Albertsons Companies' stock still holds investment potential. The analyst's overall consensus points to a "Buy" with
3 buys,
12 holds, and 1 strong buy. The possible upside price of $20.73 and a highest estimated target price of $27.62 suggest potential growth, although there is a possible downside risk to $18.99. The company's Valuation Real Value of $22.77 is slightly higher than its current market value of $20.35, indicating it may be undervalued. The company's EPS estimate for the next year is $2.62, showing a promising earnings outlook. Therefore, Albertsons Companies' stock could be a potential opportunity for investors looking for value buys in the market. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Albertsons Companies. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
