Show Me the Money! 10 July, 2020, by Vladimir Rojankovski, Chief Analyst, Grand Capital
An ongoing change in eating and shopping habits is causing consumers to visit supermarkets more often, which is a trend that benefits many retailer stocks, of which perhaps the cheapest one is Albertsons.
Rising number of coronavirus cases and reversal in certain states' reopening plans should cause the trend to continue for the next few quarters, benefiting Albertsons due to its wide geographic exposure.
The company’s IPO was carried out at $16 per share, below the planned range between $18 to $20. Accordingly, at the current price below $15, due to the price slide cause by, as we believe, by nothing more than a resolvable conflict of interests, ACI is trading below its already reduced IPO price, and it’s P/E of slightly more than 3.5 stands out of the double-digit P/Es of Walmart Company, Costco and the likes.
An ongoing change in eating and shopping habits is causing consumers to visit supermarkets more often, which is a trend that benefits many retailer stocks, of which perhaps the cheapest one is Albertsons.
Rising number of coronavirus cases and reversal in certain states' reopening plans should cause the trend to continue for the next few quarters, benefiting Albertsons due to its wide geographic exposure.
The company’s IPO was carried out at $16 per share, below the planned range between $18 to $20. Accordingly, at the current price below $15, due to the price slide cause by, as we believe, by nothing more than a resolvable conflict of interests, ACI is trading below its already reduced IPO price, and it’s P/E of slightly more than 3.5 stands out of the double-digit P/Es of Walmart Company, Costco and the likes.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.