Albertsons Companies, Inc. (NYSE:ACI) is among the 15 Dividend Growth Stocks with the Highest Growth Rates. Deutsche Bank resumed coverage on ACI with a Hold rating and $18 target, citing potential challenges in 2026 due to food disinflation and reduced government benefits. Albertsons expects softer sales growth and earnings, partly due to disruptions in SNAP benefits and Medicare drug price changes.
The US government shutdown caused a short lapse in food stamp benefits, impacting Q3 sales for Albertsons. Lower Medicare drug prices are expected to further affect sales in fiscal 2025. Despite challenges, the company’s pharmacy business saw strength from demand for immunizations and core prescriptions, offsetting some weakness.
For the full year, Albertsons forecasts identical sales growth of 2.2% to 2.5% and adjusted net income of $2.08 to $2.16 per Class A share. The company operates stores selling groceries, general merchandise, health products, and more. While ACI has investment potential, other AI stocks may offer greater upside with less downside risk.
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Read more at Yahoo Finance: Deutsche Bank Resumes Albertsons (ACI) Coverage with Hold Rating and $18 Target
