Yahoo Finance How Did Your Favorite Supermarkets Perform in February?
Did You Check Out with the Right Supermarket Stocks this Month?
February, a good month for supermarket stocks
February brought some respite to the plunging stock prices of most supermarket companies. While The Fresh Market (TFM) gained on the news of a possible acquisition from Kroger, Sprouts Farmers Market (SFM) reaped the benefits of delivering better-than-expected results. Both stocks rose more than 20% in February.
After rising 32% in 2015, Kroger fell 6% in January and continued to fall in February. It has fallen 3% so far this year, as of February 29. Despite delivering better-than-expected results, Whole Foods Market (WFM) has fallen ~6% year-to-date. SuperValu (SVU) is currently trading 57% below its 52-week low despite rising around 12% in February.
A quick look at the US supermarket industry
Supermarkets are characterized by fierce competition and paper—or plastic—thin margins. Kroger (KR) is the leading US supermarket chain, while Whole Foods Market (WFM) is the largest natural food retailer in the country. Sprouts Farmers Market (SFM) is the rising star, while The Fresh Market (TFM) and SuperValu (SVU) seem to be losing pace with the rising competition. SuperValu (SVU), Kroger (KR), Whole FoodsMarket (WFM), The Fresh Market (TFM), and Sprouts Farmers Market (SFM) together constitute ~5% of the SPDR S&P Retail ETF (XRT).
What you’ll find in this series
This series focuses exclusively on the February performances of five supermarkets, namely Kroger (KR), Whole Foods Market (WFM), The Fresh market (TFM), Sprouts Farmers Market (SFM), and SuperValu (SVU). We’ll look at the stock performances of these companies, compare their valuations, analyze their fundamentals, and look at their potential.
Browse this series on Market Realist:
