Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, national grocery chain 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.


Headquarters (founded)

Eden Prairie, Minn. (1871)

Market Cap

$2.4 billion


Grocery stores

Trailing-12-Month Revenue

$39.43 billion


CEO Craig Herkert

CFO Sherry Smith

Return on Equity (average, past 3 years)



$198 million / $7.7 billion

Dividend Yield



Wal-Mart Stores (NYSE: WMT)

Target (NYSE: TGT)

Kroger (NYSE: KR)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 306 members who have rated SUPERVALU believe the stock will outperform the S&P 500 going forward. These bulls include nogolf and All-Star TSIF, who is ranked in the top 1% of our community.

Late last month, nogolf tapped the stock as a scrumptious selection: 

Food is extremely out of favor. Will come back in. P/E is great. [SUPERVALU] has taken proper steps over the last year and a half and are now most probably aligned just right to take advantage of the slow recovery.

Unfortunately, SUPERVALU's latest results indicate that its restructuring efforts still have plenty of traction to gain. In the first quarter, the company's net income plunged 40% as the weak economy, coupled with aggressive competition, weighed heavily on sales. Of course, with discounting giants Wal-Mart and Target continuing to fight fiercely for shoppers, all traditional grocers, including Kroger and Safeway, have experienced increased pricing pressure of late.

Despite those headwinds, however, CAPS All-Star TSIF explains why SUPERVALU's turnaround plan is too cheap not to bet on:

They hired a new CEO who use to work at Walmart and is known for making tough decisions. They are shedding stores, while opening other lower cost stores. ...

Supervalu admits not responding to the recession fast enough. Cost cutting, store realignments and a focus on their Save-A-Lot model have helped return them to profit, but a weak outlook is keeping the share price depressed.

Debt is high and interest has increased on some debt renewal. If EPS forecast holds however, Supervalu is looking at a P/E of sub-8. ... Trading near book, making tough decisions, I like them as a turnaround play, with or without a buyout, which I think is unlikely considering their size and debt load. I see some value and growth here, I just hope they don't let the fruit spoil!

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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Wal-Mart is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.