Grocery Stocks: Will Thanksgiving Be a Turkey?
NEW YORK (
) -- Grocery stocks are one of the few retailers in the red today, as investors fear Thanksgiving will be a turkey.
The biggest concern is that traditional grocers like
Safeway
(SWY)
,
Supervalu
(SVU)
and
Kroger
(KR) - Get Report
won't be able to offset food inflation by raising prices.
Competition within the sector has been fierce, as
Wal-Mart
(WMT) - Get Report
and
Target
(TGT) - Get Report
continue to expand their grocery selections. This has made traditional grocers no longer the dominant players for fresh food and canned goods.
UBS analyst Neil Curry said on CNBC this morning that he does not have any buy ratings in the sector.
While he believes
Whole Foods
(WFMI)
is the best situated among the grocers, Curry says its valuation is too high.
Supervalu hit a 52-week low this morning and remains one of the riskiest companies in the sector, Curry says. Shares of Supervalue are currently down 3.6% to $8.89.
Safeway is falling slightly 0.6% to $22.50 and Kroger is off 0.2% to $22.97.
-- Written by Jeanine Poggi in New York.
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