Safeway, Inc. (SWY) - Bull Of The Day
By Zacks Investment Research on March 2, 2009 | More Posts By Zacks Investment Research | Author's Website
Safeway Inc.’s (SWY) fourth quarter results were slightly below expectations, but management issued 2009 EPS guidance of $2.34-$2.44, which is above the Zacks consensus estimate of $2.35. Even so, the stock sold off 13% on the news.
We think the sell-off is overdone, and we reiterate our Buy rating. Investors remain skittish about Safeway’s future growth because consumers continue to trade down to cheaper alternatives, and that is pressuring the company’s results.
In our view, SWY shares have declined to a level that discounts a weak macro environment that persists into 2010. Our six-month target price is $23 (down from $28), or about 10x our 2009 EPS estimate.
If you like this article please...
Leave A Comment :
Recent Market Opinions:
Societe Generale Tells Investors How To Prepare For Potential “Global Collapse”
Month To Date Review Of The Market
Stock Picks For Monday: Nanometrics, Melco Crown Entertainment, MetroPCS Communications And Cell Therapeutics
Has Gold Just Broken Out Of Its Trend Channel?
One Reason Why The US Dollar Might Rise
Recent News:
Bay Street Stocks Slip Slightly Again - Canadian Commentary - 1 day ago
Stocks Close Mostly Lower Amid Disappointing Quarterly Results - U.S. Commentary - 1 day ago
Bay Street Stocks Linger Slightly Below Unchanged Level - Canadian Commentary - 1 day ago
Stocks Remain Stuck In The Red In Mid-Afternoon Trading - U.S Commentary - 1 day ago
European Markets Fall, Led By Banks, Oils - European Commentary - 1 day ago
Opinions From Our Contributors


