Albertsons Companies (ACI) Stock Forecast & Price Target

Albertsons Companies has demonstrated a solid upward trajectory in net sales revenue, which increased by 2.08% year-over-year, reaching approximately $81.37 billion for the 12 months ending August 2025, with a forecasted growth of 8.04% over the next twelve months. The company reported a 2% increase in Q2 2026 revenue to $18.92 billion, driven by strong performance across grocery, pharmacy, and digital channels, alongside a notable 19% year-over-year increase in pharmacy sales attributed to higher prescription volumes and growing health service integration. Furthermore, Albertsons benefits from efficient operations and a robust portfolio of private brands, along with a strategic focus on enhancing both in-store and online shopping experiences, positioning the firm favorably amidst rising competition in the retail food industry.

Albertsons Companies has experienced a decline in key financial metrics, including a 3.53% year-over-year decrease in Net Operating Profit After Tax (NOPAT), which fell from $1.93 billion to $1.86 billion over the last twelve months. The company also reported a 2.33% year-over-year decline in Economic Operating Cash Flow (EBITDAR), which decreased from $6.01 billion to $5.87 billion, alongside a gross margin contraction of 61 basis points primarily attributed to a higher mix of lower-margin pharmacy and digital segments. Additionally, the Return on Capital (ROC) declined from 7.78% to 7.35%, and Economic Profit (EP) decreased significantly by 29.28% from $794.2 million to $561.7 million, raising concerns regarding the company's profitability and operational efficiency.