The Zacks Analyst Blog Highlights: Kroger Co, Safeway, Supervalu, Wal-Mart Stores and Target

Sep 27, 2011, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, Sept. 27, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kroger Co (NYSE: KR), Safeway Inc (NYSE: SWY), Supervalu Inc (NYSE: SVU), Wal-Mart Stores Inc (NYSE: WMT) and Target Corp (NYSE: TGT).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday's Analyst Blog:

Southern California Survives Strike

Southern California, which is one of the most competitive food retailing markets in the United States, recently witnessed a withdrawal of a 141 workers' strike after the United Food and Commercial Workers union arbitrated in settling a long-standing dispute between the workers and three retail giants in the region, namely Ralphs stores, Vons and Albertsons.

Ralphs stores are operated by Kroger Co (NYSE: KR), Vons is owned by Safeway Inc (NYSE: SWY) and Albertsons' parent company is Supervalu Inc (NYSE: SVU).

The discontentment was regarding funding of the employees' health plan, which was the main sticking point during the months of negotiations. As reported by the United Food and Commercial Workers union members agreed to the deal as their leaders had urged.

Earlier, both the parties were involved in a bitter 141-day strike in Southern California that lasted for two year starting 2003. It was the longest strike in the history of the U.S. grocery industry, resulting in an estimated $1.5 billion loss in sales to competitors and permanently shifting the loyalties of some shoppers.

The three largest players had been losing market share to non-union food sellers like Wal-Mart Stores Inc (NYSE: WMT) and Target Corp (NYSE: TGT)

In case no agreement was reached, Ralphs would initially close all 250 stores in the region and Albertsons would have shut up to 100 locations, while Vons had said its stores would remain open.

The prospect of closures and tense picket lines prompted fears of a repeat of the four-month strike eight years ago that cost the industry $2 billion and created a mess for shoppers.

Union leaders and the markets announced earlier in July that they had agreed on the employers' contributions to pension benefits, but rejected the payments to the union health care trust fund. However, neither a deal or a strike fell through even after the Sunday evening deadline, store employees returned to work. Union officials announced in late Monday morning that the tentative deal had been reached.

While Supervalu and Kroger hold a Zacks #3 Rank, implying a short term Hold rating, Safeway currently holds a Zacks #4 Rank, implying a short-term Sell recommendation.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

SOURCE Zacks Investment Research, Inc.



RELATED LINKS

http://www.zacks.com