Grocery store industry
Article Abstract:
Supermarket chain earnings are expected to remain strong and the grocery industry will continue to show double digit growth throughout 1996 and 1997. Investors should be aware that many supermarket chain equities have doubled or trebled in the past few years and that many stock prices are expensively valued based on price/earnings multiples. Smaller grocery chains that have a history of expansion and plan to continue adding stores may be a better investment than larger chains that are relying on improving operations to increase growth.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
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Grocery store industry
Article Abstract:
The grocery store industry, mostly large supermarket chains, continues to show good economic growth, sufficient to attract the interest of Wall Street. Supermarket chains have used private label brand items, acquisitions, cost cutting and some expansion to overcome the handicap of intense competition. Investors should be careful to select companies that do not risk overbuilding, that will improve core operations and have low operating margins.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic: