
Albertsons (NYSE: ACI) stock price faces headwinds, including intense competition, but management appears to be doing everything right, and the market is deeply disconnected from reality.
Trading at multi-year lows as of mid-April, this stock is valued at only 7X its current-year earnings forecast, while competitors command higher price points. Kroger (NYSE: KR), the once-merger target, trades at nearly twice the multiple, and even it presents value in its cash flow, capital return, and ability to provide investor returns.