Has Safeway's Pull-back Created an Opportunity?

Filed under: Safeway Inc (SWY), Stocks to Buy

The shares of grocery store chain Safeway Inc. (SWY), first discussed here on February 20, 2009 at a price of $20.09, have pulled-backed toward $20 after testing $24 last autumn, but I still like the shares at this juncture. Here's why:



Intense competition will pressure grocery prices, hurting Safeway's revenue, but the view from here argues the worst is over concerning store traffic in California, a major market for SWY.



Meanwhile, margins should increase slightly in 2011, aided by an improved product mix.

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Has Safeway's Pull-back Created an Opportunity? originally appeared on BloggingStocks on Thu, 27 Jan 2011 16:30:00 EST. Please see our terms for use of feeds.

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