SUPERVALU's Hard Road Ahead

SUPERVALU has had a rough past few months. Investors have been hit with a barrage of bad news about the company, including a dividend cut and weak same-store sales. Now it looks as if things may be getting worse. The company announced that it will close 60 underperofrming or non-strategic stores in an effort to save up to $90 million in cash and shore up its operations for a turnaround.

The company operates in a deteriorating environment as increasingly more grocery dollars move toward broad-line retailers. While SUPERVALU is very cheap on paper, investors should still tread with extreme caution. See more in the following video.

If you're hunting in this space, there are better options. Whole Foods Market, for one, has been a 30-bagger stock for early investors. However, it may not be too late to participate in the long-term growth of this organic-foods powerhouse. In our brand-new premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the opportunities and threats facing the company. We're also providing a full year of regular analyst updates to go with it, so make sure to claim your copy today by clicking here.

Austin Smith owns shares of SUPERVALU. The Motley Fool owns shares of SUPERVALU and Whole Foods Market. Motley Fool newsletter services recommend Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2010566, ~/Articles/ArticleHandler.aspx, 10/26/2016 9:54:53 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,074.57 -94.70 -0.52%
S&P 500 2,135.30 -7.86 -0.37%
NASD 5,253.76 -29.64 -0.56%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 9:38 AM
DG $68.33 Up +0.16 +0.23%
Dollar General CAPS Rating: ***
SVU $4.46 Down -0.01 -0.28%
SuperValu CAPS Rating: **
TGT $67.99 Up +0.04 +0.06%
Target CAPS Rating: ***
WFM $28.32 Down -0.27 -0.94%
Whole Foods Market CAPS Rating: ****
WMT $69.39 Up +0.03 +0.04%
Wal-Mart Stores CAPS Rating: ***