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Albertsons (NYSE: ACI), one of the leading grocery store chains in the country, is also one of the best value stocks you can buy right now.

The company has undergone some changes in the past year, as its attempt to merge with rival supermarket chain Kroger (NYSE:KR) went belly up early in the year. Federal courts and the FTC had argued that a merger of the two would harm competition.

Then in the spring of this year, Albertsons underwent a leadership transition as Susan Morris took over as CEO, replacing retiring Vivek Sankaran. In addition, tariffs and inflation have created some headwinds for retailers, including grocery stores.

Through it all, Albertsons stock has taken a hit, down about 10% year-to-date. But there are several reasons why analysts see Albertsons stock as a good value.

35% upside

Albertsons stock is considered a consensus buy among the Wall Street analysts that cover it. The stock is currently trading at just under $18 per share and has a median 12-month price target of $24 per share, which suggests 35% upside.

One of the most attractive things about Albertsons stock is its low valuation. It is undervalued relative to its earnings, trading at 10 times earnings. It is an even better value when compared to its expected earnings with a forward P/E of 8. That would indicate that the stock is in value territory.

There are good reasons to anticipate solid growth for Albertsons going forward. For starters, grocery stores are consumer staples, so they will always be in demand, even in weak economies. While there is a lot of competition, Albertsons is in good shape to thrive as most of its goods, about 90%, are sourced from the U.S. That should help keep its prices competitive.

Albertsons lifts its guidance for identical store sales

In addition, Albertsons raised its identical or same store sales growth outlook for this fiscal year, which ends on February 28, 2026. Albertsons now expects 2.0% to 2.75% identical sales growth for the year, up from 1.5% to 2.5%. The guidance was lifted primarily due to ongoing strength in its pharmacy sales.

The grocery chain has also seen strong growth in digital sales, which were up 25% in the most recent quarter.

Albertsons could also be helped by the fact that inflation rates are expected to peak at the end of 2025 and start to decline in 2026.

At this extremely attractive valuation, Albertsons looks like an excellent value right now.

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