Of 20 analysts covering Albertsons stock, 10 have a Hold rating and eight rate the shares at Buy or Strong Buy. At a recent price of around $28.60 a share, the upside potential based on a median price target of $32.00 is 11.9%. Based on a high price target of $44.00, the upside potential is about 5.38%. The merger deal has pretty much set the price target, so these numbers do not mean much.
Fiscal 2023 second-quarter revenue is forecast at $17.69 billion, which would be down 24% sequentially but about 7.1% higher year over year. Adjusted EPS are tabbed at $0.64, down 35.7% sequentially and by 19% year over year. For the full fiscal year ending in February, Albertsons is expected to post EPS of $2.91, down 5.3%, on sales of $76.16 billion, up by almost 6%.
Albertsons stock trades at 9.3 times expected 2023 EPS, 9.0 times estimated 2024 earnings of $2.99 and 9.1 times estimated 2025 earnings of $2.97 per share. The stock’s 52-week trading range is $24.34 to $37.99. Albertson’s pays an annual dividend of $0.48 (yield of 1.85%). Total shareholder return for the past year was negative 1.2%.
Goldman Sachs
Goldman Sachs Group Inc. (NYSE: GS) has posted a 12-month share price decline of about 19.5%. The continued slowdown in IPOs and M&A likely hit will the firm’s investment banking revenue harder than the rise in net interest income will boost its overall revenue. A new initiative launched this week with Apple to offer a high-yield savings account to Apple Card holders is unlikely to bear fruit for a few quarters. Even then, it is unlikely to make up the revenue declines in investment banking.
Of the 26 analysts covering the firm, 18 have a rating of Buy or Strong Buy and seven more have Hold ratings. At a share price of around $305.40, the upside potential based on a median price target of $370.00 is 21.2%. At the high price target of $483.00, the implied upside is 58.2%.
Third-quarter revenue is forecast to come in at $111.53 billion, a decline of about 2.8% sequentially and a drop of 15.3% year over year. Adjusted EPS are forecast at $7.51, down 2.8% sequentially and 98.8% lower year over year. The current estimates for the 2022 fiscal year call for revenue of $47.26 billion, down 20.4%, and EPS of $33.67, down about 43.4%.
The stock trades at 9.1 times expected 2022 EPS, 8.2 times estimated 2023 earnings of $37.34 and 7.4 times estimated 2024 earnings of $41.60. Its 52-week trading range is $277.84 to $426.16. Goldman Sachs pays an annual dividend of $10.00 (yield of 3.4%). Total shareholder return for the past 12 months was negative 19.4%.
Johnson & Johnson
Over the past 12 months, pharmaceuticals giant and Dow component Johnson & Johnson (NYSE: JNJ) has added about 3.3% to its share price. Two weeks ago, the company announced that its spin-off consumer health company will be named Kenvue. The spin-off is widely regarded as a good move for what will be left behind. Johnson & Johnson’s pharmaceutical and medical device businesses are growing much faster than the market for Band-Aids and Tylenol. A major overhang is also gone with Kenvue: thousands of lawsuits related to its baby powder, a consumer product.
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