What’s Expected from SUPERVALU’s Fiscal 1Q18 Results?

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Part 5
What’s Expected from SUPERVALU’s Fiscal 1Q18 Results? PART 5 OF 5

What’s the Word on the Street ahead of SUPERVALU’s Fiscal 1Q18?

Wall Street’s view on SUPERVALU

Ten Wall Street analysts cover SUPERVALU (SVU). The company has received a rating of 2.5 on a scale of 1 (strong buy) to 5 (sell). A total of 70% of analysts have recommended “holds” the stock, and 30% have recommended “buys.” There are no “sell” ratings on the stock.

What&#8217;s the Word on the Street ahead of SUPERVALU&#8217;s Fiscal 1Q18?

Telsey Advisory Group and Deutsche Bank are among the brokerages that have recommended “holds” on SVU, while Pivotal Research and RBC Capital have suggested “buys” on the stock. There have been no ratings changes on the wholesaler in the past year.

Peer comparison

Supermarket chains Kroger (KR) and Whole Foods Market (WFM) have lower ratings than SUPERVALU. While Kroger has a rating of 2.9, Whole Foods has a rating of 3.0.

Whole Foods has 4% “sell” and 83% “hold” recommendations, while Kroger has 56% “hold” and 8% “sell” recommendations. At 36%, Kroger has twice as many “buy” ratings as WFM’s 13%.

Among wholesalers, Sysco (SYY) has 41% “buy” recommendations and a rating of 2.5, while United Natural Foods (UNFI) has 21% “buy” recommendations and a rating of 2.9.

SUPERVALU stock is expected to rise 65% over the next year

Wall Street remains bullish on SUPERVALU. Analysts expect a rise of more than 55% in its price in the next year. The company, which was trading at $3.32 on July 13, 2017, has been assigned a target price of $5.55. The individual target prices on the company range between $3.50 and $8.00.

SVU has a stronger upside compared to other retailers and wholesalers. The share prices of supermarkets Kroger and Sprouts Farmers Market are expected to rise 16% and 8%, respectively, while the share prices of wholesalers Sysco and United Natural Foods and are expected to rise 11% and 15%, respectively, over the next 12 months.

ETF investors seeking to add exposure to SVU can consider the SPDR S&P Retail ETF (XRT), which invests 0.9% of its portfolio in the company.


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