Buying Aldi Stock? Consider These Alternatives (PLUS: Aldi Ticker Symbol & Aldi IPO Speculation)

Written By Mike Munno

Posted July 31, 2023

Will investors be able to purchase Aldi stock any time soon? It’s a question dozens want to know the answer to. Unfortunately, It doesn’t seem as though Aldi stock will be listed on public markets in the near future. So what is Aldi and why is there so much anticipation for an Aldi IPO? 

Aldi is a German discount supermarket chain that operates stores in 11 countries. It is the world's fifth-largest retailer, with annual sales of over $100 billion. Aldi was founded in 1961 by the Albrecht family. Their first location was in Germany until 1976 when they built their first location in Iowa. The company has grown substantially since then.

Now, Aldi is divided into two separate entities: Aldi Nord and Aldi Süd. Aldi Nord operates stores in Germany, Belgium, the Netherlands, Luxembourg, France, Denmark, Poland, Spain, Portugal, and the United States. Aldi Süd operates stores in Germany, Austria, Switzerland, Slovenia, Italy, Czech Republic, Hungary, Croatia, and the United Kingdom. 

Aldi Stock

Aldi is renowned for its affordable prices and straightforward store layout. The company's stores are typically smaller than traditional supermarkets and offer a limited selection of products. Aldi also does not offer customer service counters or carry many national brands. Instead, Aldi focuses on private-label products, which are often cheaper than name-brand items.

Their business model is based on efficiency and low prices. The company designs its stores for easy shopping, while its employees receive comparatively lower wages than those at traditional supermarkets. Aldi also uses a just-in-time inventory system, which helps the company to keep its costs down.

So what is the value of Aldi stock? Well, that is a tricky question. Let’s get into it…

What Is the Value of Aldi Stock? 

Aldi, being privately held, does not have publicly traded stock. This means that there is no official value for Aldi stock. However, some investors believe that Aldi stock could be worth a significant amount of money if it ever went public.

There are a few factors that could contribute to the value of Aldi stock. First, the company is very profitable. Aldi has been consistently profitable for many years. As mentioned previously, it is one of the world’s largest retailers. Second, Aldi is a well-known and respected brand. With a devoted customer base, the company is renowned for offering products of exceptional quality.

Third, Aldi is expanding its business into new markets. The company is opening new stores in the United States and other countries, which could lead to increased sales and profits. If Aldi decided to go public, Aldi stock could be worth close to $30-$40 per share. 

When you hypothetically compare Aldi stock to existing stocks in the same sector, it makes sense. Let me show you.

Aldi Stock Competitors

Since buying Aldi stock is currently not an option, let’s take a look at some similar stocks that are publicly traded.

Walmart is the world's largest retailer, with annual sales of over $550 billion. The company operates stores in 24 countries and employs over 2.3 million people. Walmart is famous for its affordable prices and extensive product range. The company's stock is publicly traded and listed on the New York Stock Exchange (NYSE). Walmart's stock ticker symbol is WMT.

Kroger is the largest supermarket chain in the United States, with over 2,700 stores in 35 states. The company also operates a number of other retail businesses, including convenience stores, jewelry stores, and health food stores. Kroger's reputation for top-notch products and excellent customer service complements its publicly traded stock listed on the NYSE. Kroger's stock ticker symbol is KR.

Both Walmart and Kroger are well-established companies with impressive track records. They are both profitable and have a loyal customer base. However, there are some key differences between the two companies. Walmart is a much larger company than Kroger, with a wider selection of products and a larger global footprint. Kroger, on the other hand, is more focused on the grocery market and has a stronger reputation for customer service.

In terms of the stock market, both Walmart and Kroger have performed well in recent years. Walmart's stock price has increased by over 75% in the past five years, while Kroger's stock price has increased by over 60%.

WMT, KR Aldi Stock

This suggests that investors are bullish on both companies.

Aldi is a smaller company than Walmart and Kroger, but it is growing rapidly. The company is expanding its store count and its product selection. Aldi is also investing in new technologies, such as online grocery ordering and delivery. These investments could help Aldi to grow its market share in the years to come.

Costco Stock: Even Bigger than Aldi stock, WMT, or KR

Costco is the smallest company in terms of annual sales, but it has the highest stock price and market capitalization. How can that be?

There are a few reasons why Costco stock is doing so well. First, the company is very profitable. Costco's operating margin is over 20%, which is much higher than the operating margins of its competitors. Second, Costco has a more loyal customer base. A customer base with a membership fee of $60 to $120 based on your plan. 

In addition to these factors, Costco benefits from the current economic climate as consumers prioritize affordability. Its low prices and high-quality products attract budget-conscious shoppers, boosting its advantage.

As you can see, the stock has benefited greatly from the company's popularity and continued loyalty.

COST Stock Chart

Although the growth of WMT and KR is commendable, it pales in comparison to COST's remarkable 150+% return. It should be noted though, that while COST has had a better run, its dividend is not super impressive.

Costco pays a dividend of 0.72% compared to WMT’s 1.45% and KR’s 2.41%. It is difficult to say whether Aldi stock will pay a dividend if/when they go public. One thing is for sure, it has a while to go before Aldi stock could catch COST. 

Does Aldi Have a Stock Symbol?

No. Aldi lacks a stock symbol as it is not publicly traded or IPO listed. If the company goes public in the future, the Albrecht family will determine the ticker symbol.

If the company does register to IPO, it would likely register under the ticker symbol ALDI. Once they register and go through the initial public offering process, you will be able to buy shares of Aldi. 

Final Say on Aldi Stock

Overall, Aldi is a well-positioned company with the potential to grow its market share in the years to come. If the company were to go public, its stock price could perform similarly to Walmart and Kroger. However, there are no guarantees in the stock market, so investors should carefully consider the risks before making a decision.

Here are some of the key factors that could contribute to the value of Aldi stock:

  • Profitability. Aldi has maintained consistent profitability over many years, and projections suggest that its profits will continue to grow in the foreseeable future.
  • Brand reputation. Aldi is a well-known and respected brand. The company has a loyal customer base, and its products are known for their high quality.
  • Expansion into new markets. Aldi is opening new stores in the United States and other countries, which could lead to increased sales and profits.

Of course, investing in Aldi stock comes with certain risks. The company's private status makes it difficult to gauge its potential stock price in case of an IPO. Also, the company's business model is based on low prices, which could make it vulnerable to competition from other retailers. Third, the company's expansion into new markets could be risky. If the company is not successful in these new markets, it could hurt its overall profitability.

Aldi stock presents potential rewards and risks. Prospective investors must carefully assess these factors when Aldi goes public. Being well-informed is crucial for making sound investment choices. We will continue to cover potential Aldi stock updates here at Wealth Daily in the meantime. 

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