Albertsons Companies (NYSE:ACI) Stock, Quote.Headers.trade-ideas

Albertsons Companies

Albertsons is the second largest supermarket operator in the United States with over 2,200 stores across a variety of banners. About 80% of the firm's sales stem from non-perishable and fresh food, of which 25% comes from its portfolio of private brands. The company also operates fuel centers and pharmacies at about 20% and 75% of its store locations, respectively. Albertsons went public in 2020 following years of ownership under private equity firm Cerberus Capital Management, which still owns about a fourth of outstanding shares.

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Precedent shows that a deal with JetBlue wouldn&#39;t have been a safety net for Spirit as most major airline mergers lead to job losses.

Spirit Airlines Bankruptcy Chatter Has Critics Blaming Biden: Here&#39;s What History Shows About Carrier Mergers

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Contrary to its odd reputation, Wall Street delivered an upbeat performance in September. The S&amp;P 500 added 1.6%, the Dow Jones advanced 1.8%, the Nasdaq Composite gained 2.3% and the Russell 2000 ticked up 0.3% last month. The month can be easily marked by the first Fed rate cut in four years, ECB&#39;s second rate cut and Chinese stimulus.

Best-Performing ETF Areas Of September

Kroger: cosa aspettarsi dai risultati del secondo trimestre

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Kroger and Albertsons shares closed lower Tuesday after lawyers for the Federal Trade Commission (FTC) gave closing arguments in a hearing to temporarily block the proposed merger between the two companies. Here&#39;s what to know.

Kroger, Albertsons Shares Dip After FTC Gives Closing Arguments In Hearing To Block Merger

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When word got around that Spirit Airlines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) was <a href="https://www.benzinga.com//node/41182466">considering a bankruptcy</a> filing, critics quickly took to social media to blame the Biden administration. 
Why? Recall how, in January, U.S. <a href="https://www.benzinga.com/news/24/01/36648448/jetblue-spirit-airlines-merger-blocked-spirit-shares-tumble">antitrust regulators successfully blocked</a> JetBlue Airways Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>) from buying Spirit for $3.8 billion. Indeed, over the past four years, regulators <a href="https://www.benzinga.com/government/24/09/40693260/kroger-albertsons-merger-in-ftc-crosshairs-customers-competitors-at-risk">often hold up</a> M&amp;A activity they consider anti-competitive, such as <a href="https://www.benzinga.com/news/large-cap/22/10/29266605/kroger-albertsons-finally-seal-the-rumored-merger-deal-see-highlights">the $25 billion merger</a> between Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) and Alberstons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>).
The JetBlue/Spirit scenario was no different. Fast-forward to this week: The <a href="https://www.wsj.com/articles/spirit-airlines-in-talks-with-bondholders-over-terms-of-potential-bankruptcy-filing-fdd23fae">Wall Street Journal</a> reported Spirit is in talks with bondholders and creditors to see if a Chapter 11 bankruptcy is the best option for the troubled carrier.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Biden and Harris torched the merger. Now many will be without a job.
&mdash; Ottoman (@raddadcomments) <a href="https://twitter.com/raddadcomments/status/1841958271655280659?ref_src=twsrc%5Etfw">October 3, 2024</a></blockquote>
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The JetBlue deal would have saved jobs and the airline, observers argued. It&#8217;s worth noting Spirit&#8217;s problems stem from having to ground several Airbus planes due to turbofan engine problems.
Bank of America Securities analysts noted in January that Spirit&#8217;s ongoing engine repairs hurt &#8220;the traditional ultra-low cost business model.&#8221;
Dania Beach, Florida-based Spirit also attributed its financial struggles to an &#8220;intense competitive battle&#8221; for price-sensitive leisure travelers, as well as an oversupply of airline seats in the domestic market.
&#8220;You can think [sic] Biden and his FTC crew for this. Way to go Joe!&#8221; a social media user posted.
Precedent shows that a deal with JetBlue wouldn&#8217;t have been a safety net for Spirit as most major airline mergers lead to job losses, regardless of whether the target is a distressed asset.
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41178053/spirit-airlines-engages-in-bankruptcy-talks-amid-financial-struggles-report">Spirit Airlines Engages In Bankruptcy Talks Amid Financial Struggles</a>
The scale and impact can vary depending on several factors such as the size of the merger. Here are a few examples of job losses from major mergers:
<ul>
<li>American Airlines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) and US Airways: After the 2013 merger, there were several thousand job losses. Estimates ranged from 1,500 to 3,000 positions cut. </li>
<li>United Airlines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) and Continental Airlines: The 2010 merger resulted in the elimination of roughly 1,500 to 2,000 job losses. These cuts were primarily due to redundant corporate and administrative positions. </li>
<li>Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>) and Northwest Airlines: While the 2008 merger helped the combined airline grow, but also led to an estimated 2,000 to 3,000 job losses.</li>
</ul>
Airline mergers often lead to route and capacity optimization, reducing staffing needs in less profitable areas. Cost synergies, like lowering fuel and labor costs, can prompt additional cuts as well. Fleet consolidation may phase out older aircraft, affecting technical staff.
Union agreements and labor contracts might also lead to layoffs as the merged airline harmonizes pay and benefits across the workforce.
While not all mergers result in severe job losses, neither do bankruptcies. Jobs can sometimes be saved when a company files for Chapter 11, since the process allows a company to reorganize its debts and operations while continuing to operate, giving it a chance to become financially viable. 
During this process, the company may restructure contracts, renegotiate with creditors and streamline operations, which can help preserve jobs that would otherwise be lost in a complete liquidation. While layoffs may occur, Chapter 11 provides more opportunities for the business to recover and protect a portion of its workforce.
Spirit&#8217;s debt load hovers around $3.3 billion, per the Wall Street Journal.
Recent airline bankruptcies include Virgin America and Monarch Airlines, both in 2017; WOW Air in 2019; and LATAM Airlines Group SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LTM#NYSE">LTM</a>) in 2020. LATAM emerged from bankruptcy in 2022 stronger and is now larger and leaner, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41123208/latam-airlines-earnings-will-remain-higher-for-longer-says-bullish-analyst">according to Morgan Stanley analysts</a>.
What&#8217;s Next: It remains to be seen whether Spirit will follow through with bankruptcy. At last check Friday, Spirit stock is trading 26.28% lower at $1.66, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.
The stock has lost more than 85% of its value in 2024. 
Now Read: 
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<li><a href="https://www.benzinga.com/news/24/10/41124443/whats-going-on-with-delta-united-and-spirit-airlines-shares-tuesday">What's Going On With Delta, United and Spirit Airlines Shares Tuesday?</a></li>
</ul>
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Spirit Airlines Bankruptcy Chatter Has Critics Blaming Biden: Here's What History Shows About Carrier Mergers

Contrary to its odd reputation, Wall Street delivered an upbeat performance in September. The S&amp;P 500 added 1.6%, the Dow Jones advanced 1.8%, the Nasdaq Composite gained 2.3% and the Russell 2000 ticked up 0.3% last month. The month can be easily marked by the first Fed rate cut in four years, ECB&#39;s second rate cut and Chinese stimulus.
<h3>U.S. Economy Grows Faster Than Expected In Q2</h3>
The U.S. economy grew at an annualized rate of 3% in the second quarter of the year, surpassing Wall Street&#39;s expectations. According to the Bureau of Economic Analysis&#39;s third estimate, this growth rate remained unchanged from the previous estimate.
Economists had estimated the reading to show an annualized growth of 2.9%. The second-quarter growth marks a significant improvement from the 1.4% annualized growth seen in the first quarter (read: <a href="https://www.zacks.com/stock/news/2342935/4-reasons-to-buy-small-cap-etfs-now?art_rec=funds-etfs-trending_topics_popular-ID07-txt-2342935" target="_blank">4 Reasons to Buy Small-Cap ETFs Now</a>).
<h3>Fed Rate Cut</h3>
The Federal Reserve kicked off the easing monetary era by slashing key interest rates by 50 bps to 4.75-5% after holding it at a 23-year high for 14 consecutive months since July 2023. This marked the first rate cut since 2020 to address slowing economic growth and showed greater confidence in the fact that inflation is moving sustainably toward the 2% target level.
<h3>Chinese Stimulus</h3>
On Sept. 24, 2024, China&#39;s central bank, the People&#39;s Bank of China (PBOC), announced a broad range of monetary stimulus measures aimed at boosting the world&#39;s second-largest economy. This move indicates growing concerns within Xi Jinping&#39;s administration over the nation&#39;s slowing growth and declining investor confidence.
<h3>ECB Rate Cut</h3>
European Central Bank (ECB) slashed rates for the second time in three months in September. The reduction, from 3.75% to 3.5%, came on the heels of slowing inflation. &nbsp;The bank also intends to bolster the region&#39;s sagging economy.
<h3>Best-Performing ETFs of September</h3>
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) for the month of September.
<h3>China ETFs</h3>
Global X MSCI China Consumer Discretionary ETF (ARCA: CHIQ) &ndash; Up 35%
KraneShares Hang Seng TECH Index ETF (ARCA: KTEC) &ndash; Up 33.7%
China&#39;s stimulus efforts boosted global markets, with mainland stocks notching their biggest weekly win since 2008. Shares of Alibaba BABA, JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>), and Meituan jumped as investors showed renewed interest in Chinese equities (read: <a href="https://www.zacks.com/stock/news/2341543/a-few-reasons-to-buy-china-etfs-now" target="_blank">A Few Reasons to Buy China ETFs Now</a>).
<h3>Technology ETFs</h3>
First Trust Dow Jones International Internet ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fdni#NASDAQ">FDNI</a>) &ndash; Up 24%
EMQQ The Emerging Markets Internet ETF EMQQ &ndash; Up 16.7%
International tech stocks have been in fine fettle due to global monetary policy easing. Since low rates are beneficial for growth sectors like technology, such an environment bodes well for international Internet stocks and ETFs. In general, Chinese stimulus and a Fed rate cut have favored the broader emerging market investing (read: <a href="https://www.zacks.com/stock/news/2342725/emerging-market-etfs-roar-back-to-new-heights" target="_blank">Emerging Market ETFs Roar Back to New Heights</a>).
<h3>Natural Gas</h3>
United States Natural Gas Fund LP (ARCA: UNG) &ndash; Up 22.8%
The natural gas markets have rallied as traders worry that the refining and extraction of natural gas in the Gulf of Mexico could be hampered due to hurricanes. Total U.S. consumption of natural gas rose by 2.5% (1.7 Bcf/d) in the week ending Sept. 25, 2024 from the previous week, <a href="https://www.eia.gov/naturalgas/weekly/" target="_blank">according to data from S&amp;P Global Commodity Insights</a>.
<h3>Lithium</h3>
iShares Lithium Miners and Producers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ilit#NASDAQ">ILIT</a>) &ndash; Up 14.7%
Electric vehicle (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ev#NYSE">EV</a>) stocks gained momentum this month on speculation of higher EV sales. Electric car sales in the United States are on track for a record quarter, <a href="https://insideevs.com/news/735231/ev-sales-q3-2024-tesla/" target="_blank">according to forecasts out Wednesday from Cox Automotive</a>, as quoted on insideevs.com. Lithium-ion batteries are the most common type of battery used in electric vehicles. This fact explains the rally in ILIT ETF.
<h3>Airlines</h3>
U.S. Global Jets ETF (ARCA: JETS) &ndash; Up 14.3%
Airlines stocks soared on strong demand, decelerating capacity and lower oil prices. The Airports Council International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aci#NYSE">ACI</a>) World projects that global passenger volume will reach 9.5 billion in 2024, which is 104% of the 2019 level and a 10% increase from 2023, <a href="https://aci.aero/2024/09/18/the-trusted-source-for-air-travel-demand-updates-2/#:~:text=The%20current%20projection%20for%202024,(YoY)%20growth%20from%202023." target="_blank">per Airport Council International</a>.
U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 60 securities and charges 60 bps on an annual basis.
<a href="https://www.zacks.com/stock/news/2343606/best-performing-etf-areas-of-september?cid=CS-BENZ-FT-etf_news_and_commentary-2343606">To read this article on Zacks.com click here.</a>

Melius Research analyst Karen Short initiates coverage on Albertsons Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) with a Hold rating and announces Price Target of $19.

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Melius Research Initiates Coverage On Albertsons Companies with Hold Rating, Announces Price Target of $19

Kroger Extends Exchange Offers And Consent Solicitations For Albertsons Companies For Up To $7,441,608,000 Aggregate Principal Amount Of New Notes And Cash; Extends Expiration Date From Sept. 23 To Sept. 27

Kroger Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) and Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) shares closed lower Tuesday after lawyers for the Federal Trade Commission (FTC) gave closing arguments in a hearing to temporarily block the proposed merger <a href="https://www.benzinga.com/government/24/09/40693260/kroger-albertsons-merger-in-ftc-crosshairs-customers-competitors-at-risk">between the two companies.&nbsp;</a>
The Details: The three-week-long U.S. District Court hearing ended on Tuesday. The FTC urged Judge Adrienne Nelson to issue a preliminary injunction to block the merger while its complaint goes before an in-house administrative law judge on Oct.1.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40888466/what-happened-with-microstrategy-stock-today">What Happened With MicroStrategy Stock Today?</a>
The proposed $24.6 billion deal would be the largest supermarket merger in U.S. history, if it goes through. Kroger and Albertsons argue the merger would allow them to lower prices for consumers, boost union jobs and compete with retail giants like Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) and Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).&nbsp;
According to a Reuters report, the FTC's chief trial counsel Susan Musser argued Tuesday that Kroger and Albertsons primarily compete with each other, rather than Amazon or Costco Wholesale Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>), as well, and the merger would eliminate competition, leading to higher food prices for customers. 
"It's this local competition, in these local communities, that this merger will eliminate," Musser said.
KR, ACI Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Kroger shares ended Tuesday's session 2.13% lower at $55.04 and Albertsons shares closed 1.75% lower at $18.54.&nbsp;
Read Also:
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<li><a href="https://www.benzinga.com/news/24/09/40887805/whats-going-on-with-tupperware-brands-stock">What&#8217;s Going On With Tupperware Brands Stock?</a></li>
</ul>
Photo: Shutterstock

The Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) (the "Company" or "Kroger") announced today that it has extended the expiration date of the previously announced offers to exchange (the "Exchange Offers") any and all outstanding notes (the "ACI Notes") of Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) ("ACI"), New Albertsons, L.P., Safeway Inc., Albertson's LLC, Albertsons Safeway LLC and American Stores Company, LLC, as applicable, for up to $7,441,608,000 aggregate principal amount of new notes to be issued by the Company (the "Kroger Notes") and cash. Additionally, Kroger announced today that it has extended the expiration date for the related solicitations of consents (collectively, the "Consent Solicitations") to adopt certain proposed amendments (the "Proposed Amendments") to the indentures (collectively, the "ACI Indentures") governing the ACI Notes, solely with respect to the Unconsented Series (as defined in the Company's press release issued on September 11, 2024). The Company hereby extends such expiration date from 5:00 p.m. New York City time on September 17, 2024 to 5:00 p.m. New York City time on September 23, 2024 (as the same may be further extended, the "Expiration Date").

Kroger Has Extended The Expiration Date For Its Exchange Offers And Consent Solicitations Related To Albertsons Companies Notes Until September 23, 2024

Reported Earlier, Kroger Extends Deadline For Exchange Offers And Consent Solicitations On Albertsons Notes To September 17, 2024

Editor&#8217;s note: This story has been updated with a statement from Kroger. 
The Federal Trade Commission (FTC) has reached the halfway point in a trial where it is trying to convince an Oregon federal judge to grant an injunction that would prevent two of the largest grocers — The Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) and Alberstons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) — from carrying out <a href="https://www.benzinga.com/news/large-cap/22/10/29266605/kroger-albertsons-finally-seal-the-rumored-merger-deal-see-highlights">a $25 billion merger</a>.
What Happened: According <a href="https://www.wsj.com/us-news/law/pivotal-week-ahead-in-kroger-albertsons-case-after-ftc-lands-early-blows-6df34e54?mod=hp_lead_pos11">to</a> the Wall Street Journal, the FTC retained expert witnesses to testify that groceries could get more expensive if Kroger and Albertsons combined.
Last week, the FTC attacked both companies' proposal to sell more than 500 stores to C&amp;S Wholesale Grocers to placate regulators.
FTC lawyers are focusing on the troubles that C&amp;S would have in implementing new brands, technology systems and supply chains in the stores it would acquire from Kroger&#8217;s and Albertsons.
C&amp;S could run some of the stores it acquires under their current names (i.e., Safeway in Colorado and Arizona). However, it would need to change the name of 286 stores and bring in new unknown brands to local shoppers.
C&amp;S estimated that sales at renamed stores could fall by as much as 22% because it would have to set up new customer loyalty programs and introduce new private-label brands.
Kroger said in a statement to Benzinga that it is merging with Albertsons &#8220;to bring lower prices to more customers, protect good-paying union grocery jobs, and to better compete with massive retailers Walmart, Costco and Amazon.&#8221;
In the event the merger is blocked, consumers will see higher grocery prices and &#8220;the larger, non-union retailers Walmart, Costco and Amazon will become even more powerful and unaccountable,&#8221; the spokesperson said. 
Read Also: <a href="https://www.benzinga.com/news/earnings/24/06/39411109/kroger-company-shares-take-off-after-q1-heres-why">Kroger Company Shares Take Off After Q1 &#8211; Here&#8217;s Why</a>
Why It Matters: The high-profile case comes as <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noreferrer noopener">data</a> shows consumers continue to grow frustrated over pricey groceries. In July, for example, there was a sharp <a href="https://www.benzinga.com/news/24/08/40404411/eggs-are-the-villain-in-july-inflation-data-grocery-prices-edge-higher-as-other-sectors-cool">5.5% increase in egg prices</a>, contributing to a 0.7% rise in the broader meats, poultry and fish category.
The FTC is also scrutinizing whether C&amp;S would run the stores long-term or is buying them to bolster its wholesale business, which lost its biggest grocery customer in 2019.
C&amp;S executives testified that the grocer has limited market coverage in the Rocky Mountain states and the southwest, but the $2.9 billion deal with Kroger and Albertsons would give C&amp;S 101 Albertsons-owned stores in Arizona and 91 in Colorado.&nbsp;
C&amp;S also said it is committed to becoming a major supermarket operator. The company's owner,&nbsp;Rick Cohen, is funding $500 million of the deal.
The FTC warned U.S. District Judge Adrienne Nelson said that Albertson&#8217;s 2015 acquisition of Albertsons resulted in Haggen, a small West Coast grocery chain, going bankrupt and closing 83 stores of 146 Albertsons stores it bought as a condition for the deal.
The FTC trial against the Kroger-Alberstons merger is taking place as Democratic presidential candidate Kamala Harris proposes a <a href="https://www.benzinga.com/news/24/08/40467624/harris-price-gouging-plan-faces-pushback-from-grocers-hurting-from-the-same-inflationary-pressure-as">price-gouging plan</a> against grocers.
Price Action: Kroger gained 0.85% to $53.66 into Tuesday&#8217;s mid-morning trading. Albertsons dipped 0.61% to $19.50.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/23/09/34361352/kroger-and-albertsons-seal-the-deal-a-1-9b-sale-to-change-the-grocery-game">Kroger And Albertsons Seal The Deal: A $1.9B Sale To Change The Grocery Game</a></li>
</ul>
Image: Shutterstock

Government

Kroger, Albertsons Merger In FTC Crosshairs: Customers, Competitors At Risk (UPDATED)

Kenvue Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KVUE#NYSE">KVUE</a>), the maker of Tylenol, has reportedly defended itself against a lawsuit in which consumers claimed being misled into overpaying for &#8220;Rapid Release&#8221; gelcaps, arguing that these gelcaps did not relieve pain any faster than less expensive Tylenol tablets.
The drug is used&nbsp;to treat mild to moderate <a target="_blank" href="https://www.benzinga.com/news/23/12/36321800/judge-bars-testimony-linking-kenvues-pain-killer-tylenol-to-autism-in-pregnancy" rel="noreferrer noopener">pain and to reduce fever</a>.
The lawsuit hinged on a 2018 study indicating that the gelcaps took slightly longer to dissolve—3.94 minutes compared to 3.56 minutes for regular tablets.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40192182/listerine-maker-kenvues-stock-soars-on-strong-q2-sales-from-its-essential-health-unit-reaffirms-ann" rel="noreferrer noopener">Listerine-Maker Kenvue&#8217;s Stock Soars On Strong Q2 Sales From Its Essential Health Unit, Reaffirms Annual Guidance</a>.
Citing a ruling issued on Tuesday, Reuters noted that U.S. District Judge Andrew Carter in Manhattan sided with Kenvue, determining that the consumers&#8217; claims were preempted by the federal Food, Drug, &amp; Cosmetic Act (FDCA).
Judge Carter emphasized that ignoring the FDA&#8217;s labeling regulations for &#8220;immediate release&#8221; acetaminophen products would be illogical because the agency did not use the term &#8220;rapid release.&#8221;
The judge further noted that similar rulings have been made in other cases, such as those against grocer Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) and pharmacy chain Rite Aid Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RADCQ#OTC">RADCQ</a>).
Carter argued that to disregard the FDA&#8217;s regulation of acetaminophen dissolution rates on the basis of marketing or pricing strategies would undermine the FDCA&#8217;s express preemption clause.
This decision reflects a consistent judicial approach to interpreting FDA guidelines, reinforcing the agency&#8217;s authority to regulate drug labeling and marketing.
Kenvue was formerly a part of Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) before becoming an independent <a target="_blank" href="https://www.benzinga.com/general/biotech/23/08/34117196/johnson-johnson-reveals-updated-2023-projections-after-finalizing-biggest-shake-up-in-135-years" rel="noreferrer noopener">company in August 2023</a>.
Price Action: KVUE stock is up 0.18% at $21.79 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40656024/teslas-chinese-rival-byd-reportedly-unveils-xia-mpv-new-model-series-aims-to-spice-up-auto-show-" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Chinese Rival BYD Reportedly Unveils Xia MPV: New Model Series Aims to Spice Up Auto Show, Expand Market Reach</a>.</li>
</ul>
Photo Courtesy: FOOD PHOTO STOCK / Shutterstock.com

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RADCQ

Johnson & Johnson-Spin Off Kenvue Wins Lawsuit Over Pain Killer Tylenol 'Rapid Release' Gelcaps

The Kroger Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) filed a motion for a preliminary injunction in the U.S. District Court, Southern District of Ohio, against the FTC&#8217;s administrative proceeding challenging its merger with Albertsons Companies, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>).
The company argues that the FTC&#8217;s use of both its administrative tribunal and a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40447542/kroger-files-motion-to-enjoin-the-ftcs-administrative-merger-challenge" rel="noreferrer noopener">federal court action violates Constitutional protections.</a>
Kroger&#8217;s motion states that the FTC&#8217;s proceeding violates the Constitution by breaching Article II, as its judge isn&#8217;t removable by the President, and Article III, by resolving private contract rights through the Executive Branch instead of the Judicial Branch.
The company claims the FTC is unfairly splitting its challenge into two tribunals for multiple chances to litigate. While pushing Kroger into an unconstitutional administrative process, the FTC also seeks to block the merger in federal court.
Evidentiary hearings in the federal court are set to begin on August 26 in Oregon.
Rodney McMullen, Kroger Chairman and CEO, said, &#8220;The merger between Kroger and Albertson&#8217;s is squarely focused on ensuring we bring customers lower prices starting day one while securing the future of good-paying union jobs.&#8221;
&#8220;We stand prepared to defend this merger in the upcoming trial in federal court – the appropriate venue for this matter to be heard – and we are asking the Court to halt what amounts to an unlawful proceeding before the FTC&#8217;s own in-house tribunal.&#8221;
The FTC&#8217;s lawsuit filed in February argues that Kroger&#8217;s merger with Albertsons would lead to higher prices for millions of Americans and put pressure on the labor market for unionized grocery workers, reported Reuters.
The $25 billion supermarket merger, announced in October 2022, aimed to create a grocery giant with over 4,000 stores. However, it has faced antitrust lawsuits, with Washington State&#8217;s attorney general leading the challenge <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40412956/whats-going-on-with-kroger-stock-premarket-friday" rel="noreferrer noopener">over concerns about rising grocery prices</a>.
The proposed merger was paused last month, awaiting a Colorado District Court ruling on a lawsuit aimed at blocking the deal.
Last week, Kroger disclosed that it has begun private exchange offers for eligible holders to swap any outstanding notes issued by&nbsp;Albertsons and its subsidiaries for&nbsp;up to $7.44 billion in new Kroger notes and cash.
Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and&nbsp;Tidal ETF Trust Newday Ocean Health ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>).
Price Action: KR shares are down 0.25% at $52.63 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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</ul>

Equities

AHOY

Kroger Takes Legal Action Against FTC's Merger Review, Claims Proceeding As 'Unconstitutional'

Kroger Sues U.S. Federal Trade Commission To Prevent In-House Review Of Albertsons Deal

The Kroger Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) disclosed on Thursday that it has begun private exchange offers for eligible holders to swap any outstanding notes issued by Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) and its subsidiaries for <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40406669/kroger-announces-commencement-of-exchange-offers-and-consent-solicitations-for-albertsons-companie" rel="noreferrer noopener">up to $7.44 billion in new Kroger notes and cash</a>.
Apart from this, the company plans to cut grocery prices by $1 billion following its $25 billion merger, reported Reuters.
The supermarket merger, announced in October 2022, aimed to create a grocery giant with over 4,000 stores. However, it has faced antitrust lawsuits, with Washington State&#8217;s attorney general leading the challenge over concerns about rising grocery prices, the report added.
The proposed merger was paused last month, awaiting a Colorado District Court ruling on a lawsuit aimed at blocking the deal.
Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39911519/merger-bound-albertsons-companies-q1-sales-beats-estimate-with-pharmacy-and-digital-sales-boost" rel="noreferrer noopener">Merger-Bound Albertsons Companies&#8217; Q1 Sales Beats Estimate With Pharmacy And Digital Sales Boost</a>
The trial is scheduled to start on September 30, according to State Attorney General Phil Weiser.
In July, Kroger revealed the comprehensive list of stores, distribution centers, and plants it plans to divest to gain regulatory approval for its <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39707233/kroger-reveals-divestiture-plan-for-albertsons-merger-approval-report" rel="noreferrer noopener">proposed merger with&nbsp;Albertsons</a>.
Kroger had previously pledged to cut grocery prices by $500 million at Albertsons locations.
The divestiture package, initially consisting of 413 stores, has been increased <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36640755/kroger-albertsons-25b-merger-plan-hits-a-snag-anticipates-completion-in-first-half-of-2024" rel="noreferrer noopener">following the Federal Trade Commission&#8217;s (FTC) intervention.</a>
In June, Kroger reported first-quarter adjusted EPS of $1.43, surpassing analyst <a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39411109/kroger-company-shares-take-off-after-q1-heres-why" rel="noreferrer noopener">expectations of $1.34 per share</a>.
Investors can gain exposure to the stock via&nbsp;Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) and Tidal ETF Trust Newday Ocean Health ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHOY#NYSE">AHOY</a>).
Price Action: KR shares are up 0.98% at $53.41 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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</ul>

What's Going On With Kroger Stock Premarket Friday?

For those shopping for groceries, a modest 0.1% increase in the food-at-home index might seem manageable, but specific items <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39728268/inflation-slows-more-expected-to-3-in-june-heightens-expectations-for-rate-cuts-t">are pricier than others</a>.
For example, <a href="https://www.bls.gov/news.release/cpi.nr0.htm">data</a> shows consumers faced a sharp 5.5% increase in egg prices, contributing to a 0.7% rise in the broader meats, poultry, fish and eggs category. 
This spike is particularly burdensome for families relying on eggs as a staple protein source, pushing them to either absorb the cost or seek alternatives.
For July, the average price per dozen large Grade A eggs in U.S. cities was $3.08. This trend highlights the marked, ongoing volatility in egg prices due to fluctuating supply and demand conditions.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40399595/bill-ackman-cuts-chipotle-stake-right-before-stock-drop-did-billionaire-see-what-the-market-coul">Bill Ackman Cuts Chipotle Stake Right Before Stock Drop: Did Billionaire See What The Market Couldn&#8217;t?</a>
Here&#8217;s a closer look at the other food groups:
<ul>
<li>Fruits and Vegetables: A 0.8% increase in this category adds pressure on consumers aiming to maintain a healthy diet. This rise might lead some households to reduce purchases of fresh produce, impacting nutritional choices.</li>
<li>Nonalcoholic Beverages: The 0.5% rise in this index suggests that even everyday items like coffee, juice and soda are subtly increasing overall grocery bills.</li>
</ul>
On the flip side, declines in certain categories offered some relief:
<ul>
<li>Cereals and Bakery Products: A 0.5% decrease here could help offset rising costs elsewhere, providing some respite for consumers who rely on these items as dietary staples.</li>
<li>Dairy Products: With a slight 0.2% decline, dairy costs are easing, which may encourage continued consumption of milk, cheese, and yogurt, key sources of calcium and protein.</li>
</ul>
Read Also: <a href="https://www.benzinga.com/top-stories/24/08/40396716/starbucks-new-ceo-brian-niccol-boosts-company-valuation-by-over-15b-in-one-day-whats-his-net-worth">New Starbucks CEO Brian Niccol Boosts Company Valuation By Over $15B In One Day: What&#8217;s His Net Worth?</a>
<h2 class="wp-block-heading">Dining Out</h2>
<ul>
<li>The food-away-from-home category saw a 0.2% increase in July; though smaller than in previous months, still reflects ongoing inflationary pressure on dining out. </li>
<li>Limited-service meals (e.g., fast food) saw a 0.3% increase, which could push consumers to reduce eating out or opt for cheaper menu items. </li>
<li>Full-service meals rose by 0.1%, signaling that even sit-down dining is becoming less affordable.</li>
</ul>
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40401329/russell-2000-set-for-strongest-session-in-a-month-as-us-economy-defies-recession-fears-small-cap">Russell 2000 Set For Strongest Session In A Month As US Economy Defies Recession Fears: Small Cap Movers On Thursday</a>
<h2 class="wp-block-heading">Stocks To Watch</h2>
<ul>
<li>Kroger Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>), one of the largest grocery chains in the U.S., could benefit from ongoing consumer spending on groceries despite price fluctuations. The company&#8217;s scale and diversified product offerings help it manage supply chain costs and offer competitive pricing.</li>
<li>Costco Wholesale Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) could attract consumers looking to save money amid rising grocery prices. The company&#8217;s focus on value and bulk items aligns well with current consumer behavior trends.</li>
<li>Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) could also benefit from increased grocery sales. Its efforts to enhance the grocery shopping experience and competitive pricing strategies might position it well in a challenging environment.</li>
<li>Albertsons Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) is well-positioned to capitalize on steady grocery spending. Its focus on various grocery formats and geographic reach might support its performance.</li>
<li>Sprouts Farmers Market Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFM#NASDAQ">SFM</a>), focusing on fresh and organic offerings, might appeal to consumers willing to pay a premium for higher-quality products.</li>
</ul>
U.S. markets soared on Thursday following the release of stronger-than-expected <a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40393687/retail-sales-soar-in-july-weekly-jobless-claims-undercut-expectations-traders-lea">economic data</a>, which pointed to a robust consumer sector and a resilient labor market, fueling optimism about the nation's economic outlook.
According to preliminary estimates released Thursday, U.S. retail sales jumped by 1% month-over-month in July, sharply rebounding from June's stagnation and far exceeding the anticipated 0.3% growth. 
On a year-over-year basis, retail sales increased by 2.7%, accelerating from a downwardly revised 2% gain in June. Excluding motor vehicles and parts, retail sales still grew by 0.4%, outpacing economist expectations of a modest 0.1% rise.
Meanwhile, July food price data highlighted ongoing challenges for consumers managing household budgets. The overall food index rose by 0.2%, continuing a trend of rising costs.
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Image by <a href="https://pixabay.com/users/kc0uvb-5658981/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=2411667">Jeremy Smith</a> from <a href="https://pixabay.com//?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=2411667">Pixabay</a>

Eggs Are The Villain In July Inflation Data: Grocery Prices Edge Higher As Other Sectors Cool

Kroger Doubles Price Cuts For Albertsons Stores To $1 Billion In Effort To Secure Approval For $24.6B Merger

Haggen Food &amp; Pharmacy now available for same-day delivery from Instacart
SAN FRANCISCO and BOISE, Idaho, July 31, 2024 /PRNewswire/ -- Instacart (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CART#NASDAQ">CART</a>), the leading grocery technology company in North America, and Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) today announce the launch of Instacart pickup services and Albertsons Rapid convenience delivery nationwide at banners&#x2A; including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls and Vons. Additionally, Haggen Food &amp; Pharmacy is now available on the Instacart App for same-day delivery. This program expansion provides Instacart customers with greater access to groceries and household essentials alongside the quality and fresh assortment they expect from Albertsons Cos. banner stores.

CART

Instacart And Albertsons Companies Expand Partnership Nationwide Launching Pickup Services And Convenience Delivery

Kroger And Albertsons Agree To Delay Deal For September Trial; Colorado Judge Temporarily Halts $25B Merger As Colorado AG Sues To Block It

Telsey Advisory Group analyst Joe Feldman maintains Albertsons Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) with a Market Perform and maintains $27.25 price target.

Telsey Advisory Group Maintains Market Perform on Albertsons Companies, Maintains $27.25 Price Target

Albertsons Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) reported first-quarter FY24 sales growth of 0.9% year-on-year to $24.27 billion, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39905020/albertsons-companies-inc-reports-first-quarter-fiscal-2024-results" rel="noreferrer noopener">beating the analyst consensus estimate of $24.14 billion</a>.
The increase was driven by a 1.4% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase. Digital sales increased 23%.
Gross margin rate expanded 10 basis points to 27.8%. The operating margin was 1.9%, and operating income for the quarter declined 26.1% to $459.6 million.
The company held $291.1 million in cash and equivalents as of June 15. Operating cash flow totaled $960.9 million.
Adjusted EBITDA of $1.183 billion decreased 10.2% Y/Y. Adjusted EPS of $0.66 <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">missed the consensus estimate of $0.67</a>.
Net debt totaled $7.57 billion as of June 15, 2024. Net debt ratio was 1.81.
&#8220;Our Customers for Life strategy is placing the customer at the center of everything we do, and we continued to drive strong year-over-year growth in loyalty members as we launched our new simplified &#8216;for U&#8217; loyalty program. Amidst an evolving economic and industry backdrop, we continued to deliver outsized growth in our digital and pharmacy businesses,&#8221; said CEO Vivek Sankaran.
Recently, Kroger Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) reportedly revealed the comprehensive list of stores, distribution centers, and plants it plans to divest to gain regulatory approval <a target="_blank" href="https://www.benzinga.com//node/39707233" rel="noreferrer noopener">for its proposed merger with&nbsp;Albertsons.</a>
Price Action: ACI shares are trading higher by 0.75% at $20.09 at last check Tuesday.
Photo via Wikimedia Commons

Earnings

Merger-Bound Albertsons Companies' Q1 Sales Beats Estimate With Pharmacy And Digital Sales Boost

Albertsons Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) reported quarterly earnings of $0.66 per share which missed the analyst consensus estimate of $0.67 by 1.49 percent. This is a 29.03 percent decrease over earnings of $0.93 per share from the same period last year. The company reported quarterly sales of $24.27 billion which beat the analyst consensus estimate of $24.14 billion by 0.52 percent. This is a 0.89 percent increase over sales of $24.05 billion the same period last year.

Earnings Beats

Earnings Misses

Albertsons Companies Q1 Adj $0.66 Misses $0.67 Estimate, Sales $24.27B Beat $24.14B Estimate

Kroger: Still On Sale After Q2 2024 Earnings

Verizon: Frontier Deal May Limit Upside (Rating Downgrade)

Thanks to resilience in consumer spending and the rapid evolution of technology, the retail sector is rising. Hence, it could be an opportune time to invest in high-quality discounted retail stocks such as Target Corp. (TGT), Kroger (KR), and Albertsons Companies (ACI). Read on… Retail stocks have gained attention as consumer spending remains resilient even in the face of economic uncertainty. Thus, for investors, it could be wise to scoop up the shares of high-quality retail stocks like Target Corporation (<a href="https://stocknews.com/stock/TGT/">TGT</a>), The Kroger Co. (<a href="https://stocknews.com/stock/KR/">KR</a>), and Albertsons Companies, Inc. (<a href="https://stocknews.com/stock/ACI/">ACI</a>), which are trading at a discount compared to their peers.
Retail sales increased in August due to strong consumer demand and easing inflation. According to the Retail Monitor, total retail sales (excluding automobiles and gasoline) rose by 0.5% sequentially and <a href="https://www.cpapracticeadvisor.com/2024/09/13/retail-sales-grew-in-august-as-inflation-decreased/110471/">2.1% year-over-year</a>. Over the first eight months of the year, total retail sales grew by 2.1% year-over-year, with core sales rising by 2.3%.
Grocery and beverage stores also saw a healthy boost, with a 0.9% increase from July and a 2.5% rise from August last year. Meanwhile, fueled by strong promotional pushes for subscription and membership programs, the U.S. online grocery sales ended August <a href="https://www.producebluebook.com/2024/09/16/august-online-grocery-sales-near-10-billion-up-7/">at $9.9 billion</a>, marking a 7% increase from the previous year.
The expansion of online grocery shopping and delivery services has broadened market access and convenience for consumers. The online grocery market, valued at approximately $11.93 billion in 2024, is projected to reach nearly $15.47 billion by 2031, growing at a <a href="https://www.verifiedmarketresearch.com/product/food-grocery-retail-market/">CAGR of 3.3%</a>. This growth is supported by an increasing consumer focus on health and wellness, with a rising demand for organic and health-conscious products.
Moreover, the retail industry is inherently consumer-driven and highly dynamic, adapting to shifting consumer preferences, technological advancements, and market trends. Today, retailers are not just adjusting to digital transformation but are actively embracing it. This shift enhances operational efficiencies and enables retailers to offer a more personalized shopping experience.
Considering these conducive trends, let's examine the <a href="https://stocknews.com/category/grocery-big-box-retailers/">Grocery/Big Box Retailers</a> industry stocks in detail, beginning with the third choice:
Stock #3: Albertsons Companies, Inc. (<a href="https://stocknews.com/stock/ACI/">ACI</a>)
ACI is engaged in the operation of food and drug stores in the United States. It offers groceries, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services.
On September 4, ACI launched its newest brand, Overjoyed, its first major private label. The label offers categories that include bakery and décor, snack mixes, candy, cookies, and celebration supplies. The addition aligns with the company's strategy to expand its brand portfolio, boost margins, and differentiate its offerings in a competitive retail landscape.
On June 25, ACI partnered with Gruhub to offer delivery from nearly 1,800 of its stores, including Albertsons, Safeway, and Jewel-Osco, via the Grubhub Marketplace. As the first national grocery chain to collaborate with Grubhub, ACI expands its reach, enhancing customer convenience and competitiveness in the growing grocery delivery market.
ACI's trailing-12-month ROTC of 8.28% is 19.2% higher than the 6.94% industry average. Similarly, its 45.56% trailing-12-month ROCE is considerably higher than the industry average of 10.67%.
In terms of forward non-GAAP P/E, ACI is trading at 8.06x, 56% lower than the industry average of 18.34x. Likewise, the stock's forward EV/Sales and Price/Cash Flow multiples of 0.31 and 3.87 are 82.3% and 68.8% lower than the industry averages of 1.74x and 12.40x, respectively.
In the fiscal first quarter that ended on June 15, 2024, ACI's net sales and other revenue increased marginally year-over-year to $24.27 billion. The company reported a gross margin of $6.74 billion, indicating 1.1% growth from the prior year quarter. ACI's adjusted <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> stood at $391.60 million or $0.66 per common share.
Analysts expect ACI's revenue and EPS for the current year (ending February 2025) to be $80.53 billion and $2.36, respectively. For the fiscal year 2026, both its revenue and EPS are expected to grow by 1.6% and 0.6% from the prior year to $81.81 billion and $2.38, respectively.
ACI's stock has gained marginally intraday to close the last trading session at $19.06.
ACI's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
ACI has an A grade for Value and a B for Quality. It is ranked #20 out of 37 stocks in the A-rated <a href="https://stocknews.com/category/grocery-big-box-retailers/">Grocery/Big Box Retailers</a> industry. <a href="https://stocknews.com/stock/ACI/">Click here</a> to see the additional ratings for ACI (Growth, Momentum, Stability, and Sentiment).
Stock #2: The Kroger Co. (<a href="https://stocknews.com/stock/KR/">KR</a>)
KR is a food and drug retailer that owns and operates in supermarkets, multi-department stores, marketplace stores, and price-impact warehouses. It offers grocery, health, and beauty care items, general merchandise (including apparel, home goods, and toys), pet centers, fresh seafood, and organic produce.
On July 31, KR announced the expansion of its ‘Our Brands' portfolio with the launch of Field &amp; Vine&#x2122;, a fresh produce line sourced from U.S. farmers across several states. The brand offers seasonal berries like blueberries, blackberries, raspberries, and strawberries, ensuring optimal freshness and reduced transit times. This expansion enhances KR's private label offerings and is poised to attract health-conscious consumers.
KR's trailing-12-month ROCE and ROTA of 24% and 5.43% are 125% and 23.5% higher than their respective industry averages of 10.67% and 4.40%. Likewise, its trailing-12-month asset turnover ratio of 2.96x is considerably above the industry average of 0.85x.
In terms of forward EV/Sales, KR is trading at 0.38x, which is 78% lower than the industry average of 1.74x. The stock's forward Price/Sales ratio of 0.27x is 79.9% below the industry average of 1.35x. Also, its forward Price/Cash Flow multiple of 6.41 compares to the industry average of 12.40x.
For the second quarter of 2024, which ended on August 17, KR's sales increased marginally year-over-year to $33.91 billion. Its operating profit came in at $815 million versus a loss of $479 million in the prior year. Further, its attributable net earnings amounted to $466 million and $0.64 per share, compared to a net loss of $180 million and $0.25 per share in 2023.
Per the updated financial guidance 2024, KR forecasts identical sales without fuel between 0.75% and 1.75%. The company expects adjusted FIFO operating profit to be in the range of $4.60 billion to $4.80 billion. Also, its adjusted net earnings per share is forecasted to lie between $4.30 and $4.50.
Street expects KR's revenue for the fiscal third quarter (ending October 2024) to increase marginally year-over-year to $34.23 billion. Its EPS for the same period is expected to register a 3.2% growth from the prior year, settling at $0.98. In addition, it surpassed the EPS estimates in each of the trailing four quarters, which is promising.
Shares of KR have surged 25% over the past nine months to close the last trading session at $55.91.
KR's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It also has a B grade for Value and Quality. Within the same A-rated industry, it is ranked #10. <a href="https://stocknews.com/stock/KR/">Click here</a> to see KR's ratings for Growth, Momentum, Stability, and Sentiment.
Stock #1: Target Corporation (<a href="https://stocknews.com/stock/TGT/">TGT</a>)
TGT is a general merchandise retailer selling products through physical stores and digital platforms. The company offers a broad range of everyday essentials and stylish, unique items at competitive prices. Most stores feature diverse merchandise, including apparel, beauty and household essentials, food and beverages, hardlines, and home furnishings.
On June 24, the company partnered with Shopify Inc. (<a href="https://stocknews.com/stock/SHOP/">SHOP</a>) to enhance its Target Plus marketplace with new, curated products from popular Shopify merchants like True Classic and Caden Lane. This collaboration is expected to expand Target Plus's online offerings and bring select Shopify products into Target's physical stores, providing shoppers with a wider range of affordable, high-quality brands.
The stock's trailing-12-month ROTA of 8.01% is 82.1% higher than the industry average of 4.40%. Similarly, its 33.97% trailing-12-month ROCE is 218.4% above the industry average of 10.67%. Also, its trailing-12-month asset turnover ratio of 1.97x compares favorably to the industry average of 0.85x.
In terms of forward non-GAAP P/E, TGT is trading at 15.93x, 13.2% lower than the industry average of 18.34x. Likewise, the stock's forward EV/Sales and Price/Sales multiples of 0.80 and 0.65 are 54.1% and 51.6% lower than their respective industry averages of 1.74 and 1.35.
TGT's total revenue for the fiscal second quarter (ended August 3, 2024) amounted to $25.45 billion, up 2.7% year-over-year. The company's net earnings for the quarter amounted to $1.19 billion or $2.57 per share, representing an increase of 42.7% and 42.4% from the same period last year. In addition, its EBITDA increased to $2.39 billion from $1.89 billion recorded in the same period last year.
For the full year, the company expects a 0% to 2% rise in comparable sales and forecasts its adjusted EPS to range between $9.00 and $9.70 (up from the prior range of $8.60 to $9.60).
The consensus revenue estimate of $25.94 billion for the fiscal third quarter (ending October 2024) represents a 2.1% increase year-over-year. The consensus EPS estimate of $2.29 for the same quarter indicates a 9.1% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past year, the stock has gained 23.1%, closing the last trading session at $151.36.
TGT's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has a B grade for Value, Momentum, Sentiment, and Quality. Out of 37 stocks in the Grocery/Big Box Retailers industry, TGT is ranked #7. <a href="https://stocknews.com/stock/TGT/">Click here</a> to see TGT's rating for Growth and Stability.
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TGT shares were trading at $152.28 per share on Monday afternoon, up $0.92 (+0.61%). Year-to-date, TGT has gained 10.19%, versus a 19.08% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/tgt-kr-aci-shop-3-high-quality-retail-stocks-trading-at-a-discount/>3 High-Quality Retail Stocks Trading at a Discount</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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Press Releases

Albertsons Companies Pharmacies Announce COVID and Flu Vaccines Available Now to Help Protect Communities Against the Upcoming Respiratory Virus Season

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Offerings

Kroger Announces Extension of Exchange Offers and Consent Solicitations for Albertsons Companies, Inc. Notes

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