Why Albertsons Stock Rallied 16% This Week
Shares of grocery store chain Albertsons (NYSE: ACI) are on pace to end this week with a 16.5% gain from last Friday's close, driven higher by multiple factors that have had time to simmer.
Don't bother looking for a specific headline that spurred this week's gains, and Thursday's 9.5% advance in particular. You won't find one. Rather, to see why this consumer staples name has done so well of late, take a step back and look at the entire month's news including news not directly about Albertsons. Namely, this week's big rally caps off more than a 50% gain for the past month, spurred mostly by soaring food inflation. While challenging for consumers, higher retail prices typically improve overall profits for grocery stores.
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Source Fool.com
