Is Albertsons Companies (ACI) One of the Best Stocks Under $20 to Buy?

Albertsons Companies, Inc. (NYSE:ACI) is one of the 10 Stocks Under $20 to Buy According to Analysts. On October 20, Tigress Financial Partners increased its price target on Albertsons Companies, Inc. (NYSE:ACI) from $28 to $29 and kept a Buy rating.

This decision came after Albertsons Companies, Inc. (NYSE:ACI) shared strong results for Q2 fiscal year 2025. The company reported steady sales growth, better profitability, and progress in its digital transformation investments.

Tigress Financial Partners pointed out that Albertsons Companies, Inc. (NYSE:ACI) is growing through AI-powered digital sales. The firm also highlighted the company’s high-margin retail media platform and expanding loyalty programs as key reasons behind the increase in price target.

The research firm sees Albertsons Companies, Inc.’s (NYSE:ACI) Media Collective as an important long-term growth driver. The firm expects it to help increase both revenue and margins over the next three years.

Tigress Financial Partners also noted the company’s recent $750 million accelerated share repurchase agreement. Albertsons Companies, Inc. (NYSE:ACI) is investing in digital growth initiatives, new store openings, and store upgrades.

Previously, on October 16, JPMorgan had also maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) with a price target of $24 after the results for the second quarter of fiscal 2025 were reported.

Albertsons Companies, Inc. (NYSE:ACI) is a leading food and drug retailer in the US. It operates stores under 22 well-known brands such as Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, ACME, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market.

While we acknowledge the potential of ACI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.