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4-Star Stocks Poised to Pop: SUPERVALU

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, grocery store operator SUPERVALU (NYSE: SVU  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at SUPERVALU's business and see what CAPS investors are saying about the stock right now.

SUPERVALU facts

Headquarters (Founded) Eden Prairie, Minn. (1871)
Market Cap $1.5 billion
Industry Food retail
Trailing-12-Month Revenue $36.5 billion
Management CEO Craig Herkert (since 2009)
CFO Sherry Smith (since 2010)
Return on Equity (Average, Past 3 Years) (41.1%)
Cash/Debt $196.0 million / $6.9 billion
Dividend Yield 5%
Competitors Kroger
Safeway
Wal-Mart

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 882 members who have rated SUPERVALU believe the stock will outperform the S&P 500 going forward.  

Just last month, one of those bulls, DargFool, highlighted SUPERVALU as a solid bargain opportunity:

Turn-around story. As the company deleverages by paying back debt from free cash flow, the share price multiple will expand once debt is brought back into balance.

From an operational perspective, their current focus on cost control, and value oriented markets will allow them to continue to generate cash even in difficult economic times.

What do you think about SUPERVALU, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Wal-Mart and SUPERVALU. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Wal-Mart, as well as buying calls in SUPERVALU. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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.

  • Report this Comment On January 18, 2012, at 3:36 PM, philc49 wrote:

    is any one watching this stock??? they have virtually no cash, high accts payable, long term debt on a ratio of 9 to 1 on equity, and they recently wrote down intangible assets by $750 million. Net "equity" is now $750 mm and "intangible" assets are $4 billion (8 times equity). Their market share continues to decline, and their margins are poor. What am I missing that this stock should not be in chapter 11??

  • Report this Comment On January 18, 2012, at 3:38 PM, philc49 wrote:

    I also noted that 10 directors sold 5,596 share each on 1/13/12 at a share pricre of $7.15. Think they know something we don't?

  • Report this Comment On February 14, 2012, at 12:13 AM, onemoof wrote:

    They are generating over $1.3 billion in positive cash flow per year which they're re-investing into remodeled stores, debt repayments, and price reductions. They are nowhere near bankruptcy at this time.

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Related Tickers

5/16/2012 4:00 PM
SVU $5.12 Down +0.00 +0.00%
SUPERVALU INC. CAPS Rating: ***

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