The macroeconomic and geopolitical uncertainty since the beginning of the year has led to several quality stocks trading at discounted valuations. The highly volatile market has…
compelled many investors to stay away from fundamentally strong stocks.
However, the macroeconomic picture might improve as inflation slightly eased in October. The consumer price index rose 7.7% year-over-year and 0.4% sequentially, both coming lower than expected last month. Also, the recently released minutes from the Fed’s policy meeting showed signs that the central bank might slow down the current pace of rate hikes.
As we’re getting closer to the end of the year, CNBC’s Jim Cramer expects the seasonal pattern to play out where the stocks in the benchmark S&P 500 will rally in December.
Given this backdrop, investors looking for bargains could consider buying fundamentally strong stocks like Albertsons Companies, Inc. (ACI), Berry Corporation (BRY), and Good Times Restaurants Inc. (GTIM), which are trading at discounts to their peers.
Albertsons Companies, Inc. (ACI)
ACI engages in the operation of food and drug stores. The company offers grocery, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores.
On October 14, 2022, Kroger (KR) and ACI announced that they had entered into a definitive merger agreement. CEO of ACI, Vivek Sankaran, believes that together with Kroger, they will be able to provide customers with greater value and access to fresh food and essential pharmacy services and positively impact their associates and communities.
In terms of forward non-GAAP P/E, ACI’s 7x is 64.1% lower than the 19.49x industry average. Likewise, its 8.51x forward EV/EBIT is 45.7% lower than the 15.69x industry average. In addition…
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