Posts for Ticker ‘SWY’

Top Analyst Upgrades (ATHN, BPSG, FWRD, JDAS, MRVL, MWA, SWY, STT)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Tuesday morning with about two hours until the market opens:

athenahealth (ATHN) Raised to Outperform at Blair.
Broadpoint Securities (BPSG) Started as Outperform at KBW.
Forward Air (FWRD) Raised to Buy at KeyBanc.
JDA Software (JDAS) Started as Outperform at JMP Securities.
Marvell (MRVL) Raised to Outperform at JMP Securities.
Mueller Water (MWA) Raised to Perform at Oppenheimer.
Safeway (SWY) Raised to Buy at Jefferies.
State Street (STT) Started as Outperform at Bernstein.

JON C. OGG

Posted on: June 9, 2009 – 6:39 am in Analyst Calls, , , , , , , ,

Analyzing Whole Foods Earnings, Post-Double (WFMI, KR, SWY, WMT)

Whole Foods ImageWhole Foods Market, Inc. (NASDAQ: WFMI) is set to report earnings after the close of trading today.  We have Thomson Reuters targets of $0.18 EPS and $1.87 billion in revenue.  We will be paying close attention to the organic growth at the high-end grocer not just because it is closely watched by traders and investors interested in organic foods.  It was just on March 11 when we predicted that this could double off of lows, and it has already done that.  This makes analyzing today’s earnings rather difficult.
Read More »

Posted on: May 13, 2009 – 1:48 pm in Consumer Goods, Earnings, Food, Retail, , , ,

Top 10 Pre-Market Analyst Upgrades (BAM, CEPH, CYPB, FCEL, KR, SWY, XNPT)

Money_stack_picThese are some of the top analyst upgrades and positive research calls we have seen from Wall Street this Tuesday morning:

  • Brookfield Asset Management (BAM) Started as Buy at TD.
  • Cephalon (CEPH) Started as Buy at Piper Jaffray.
  • Cypress Bioscience (CYPB) Started as Buy at Piper Jaffray.
  • FuelCell Energy (FCEL) Started as Overweight at Thomas Weisel.
  • Kroger (KR) Raised to Neutral from Underweight at JPMorgan.
  • Safeway (SWY) Raised to Neutral from Underweight at JPMorgan.
  • Xenoport (XNPT) Started as Buy at Piper Jaffray.

Jon C. Ogg
December 16, 2008

Posted on: December 16, 2008 – 7:50 am in Analyst Calls, , , , , , ,

Companies Hit Hardest By Credit Crisis (AAPL)(SIRI)(CC)(DIS)(WMT)(MCD)

Updated: 31 October 2008

Angrybear_2Not all companies and industries will be hit equally hard by the consumer credit crisis. Operations such as Procter & Gamble (PG), McDonald’s (MCD), and Wal-Mart (WMT) may be safe. They either sell things people can’t do without or offer inexpensive goods and services that consumers can afford during a tough period. McDonald’s reported earnings today and its same-store sales were up in every region.The stock traded up on a day when the overall market was swamped by selling.

If the credit crisis gets substantially worse and only the most stable companies with the highest credit ratings have access to cash, some will not be able to maintain inventory. Other firms will be affected because their target consumers no longer have any discretionary income. The head of AutoNation (AN), the largest car dealer chain in the US, said that even his prime customers cannot get bank loans for new cars in many cases. "The banks are looking for every excuse possible to say no and they are saying no to good customers," Reuters quotes him as saying.

Neither set of companies has a bright future, but the ones who cannot finance their operations and inventories face almost immediate consequences

Read More »

Posted on: October 2, 2008 – 8:01 pm in Economy, , , , , , , , , , , , , , , , , , , , , ,

52-Week Low Club (AYE, AXL, APL, AUO, CHB, CMLS, GAP, MAC, MIR, RRI, SGLP, SWY, VRTU)

52_week_low_image_2Its Friday, and despite a fairly stable market today there were of course many 52-week lows.  Some look like a mid-city explosion from news, and some are just the normal selling.  As a reminder, some of these stocks are not under the 52-week lows at the time this published but these would have hit prior 52-week lows or traded under them on an intra-day basis. 

Read More »

Posted on: July 18, 2008 – 2:29 pm in HI/LOW, , , , , , , , , , , , ,

Top 10 Pre-Market Analyst Calls (APC, FISV, IPCM, KR, RSH, RAI, SWY, SNDK, URBN, ZEP)

These are ten analyst calls we are focusing on in pre-market trading this Friday morning:

  • Anadarko Petroleum (NYSE: APC) Raised to Overweight from Equal-weight at Lehman.
  • Fiserv (NASDAQ: FISV) Raised to Market Outperform from Market Perform at JMP Securities.
  • IPC The Hospitalist (NASDAQ: IPCM) Cut to Market Perform from Outperform at Wachovia.
  • Kroger (NYSE: KR) Raised to Overweight from Equalweight at Morgan Stanley.
  • RadioShack (NYSE: RSH) Raised to Buy from Neutral at Goldman Sachs.
  • Reynolds American (NYSE: RAI)  Cut to Underweight from Neutral at JPMorgan.
  • Safeway (NYSE: SWY) Cut to Equal-weight from Overweight at Morgan Stanley.
  • SanDisk (NASDAQ: SNDK) Cut to Market Underperform from Market Perform at JMP Securities.
  • Urban Outfitters (NASDAQ: URBN) Cut to Equal-weight from Overweight at Lehman Brothers.
  • Zep (NYSE: ZEP) started as Buy at KeyBanc Capital.

Jon C. Ogg
May 16, 2008

Jon Ogg produces and edits the "10 Stocks Under $10" newsletter and he does not own securities in the companies he covers.

Posted on: May 16, 2008 – 6:37 am in Analyst Calls, , , , , , , , , ,

The 52-Week Low Cub (SWY)(NOC)(HCSG)(HANS)

Safeway (SWY) Food prices hurting retailing margins. Falls to $25.75 from 52-week high of $38.31.

Northrop Grumman  (NOC) Q1 charge still weighs on shares. Sell off to $69.48 from 52-week high of $85.21.

Healthcare Services (HCSG) First quarter profit drop. Down to $14.54 from 52-week high of $25.25.

Hansen Natural (HANS) No news. Commodities costs could weigh on beverage maker. Sells off to $32.04 from 52-week high of $68.40.

Douglas A. McIntyre

Posted on: April 16, 2008 – 2:47 pm in HI/LOW, , , ,

Top 10 Pre-Market Analyst Calls (AMT, CCI, SBAC, BEAV, GWR, HOLX, SWY, KNOT, MDCO, UBS, VCLK)

Below are the top 10 pre-market analyst we are looking at this Thursday morning:

  • American Tower (NYSE: AMT), Crown Castle (NYSE: CCI), and SBA Communications (NASDAQ: SBAC) all initiated as BUY at Jefferies.
  • Baidu.com (NASDAQ: BIDU) raised to Outperform at RBC Capital.
  • BE Aerospace (NASDAQ: BEAV) downgraded to Neutral from Buy at UBS.
  • Gennesee & Wyoming (NYSE: GWR) raised to Outperform at Bear Stearns.
  • Hologic (NASDAQ: HOLX) started as Buy at Sun Trust Robinson Humphrey.
  • Safeway (NYSE: SWY) raised to Neutral from Sell at UBS.
  • The Knot (NASDAQ: KNOT) downgraded to Neutral at JPMorgan.
  • The Medicines Co. (NASDAQ: MDCO) raised to Buy from Hold at Citigroup.
  • UBS (NYSE: UBS) downgraded to Hold from Buy at Deutsche Bank.
  • ValueClick (NASDAQ: VCLK) raised to Outperform at Robert W. Baird.

Jon C. Ogg
February 14, 2008

Posted on: February 14, 2008 – 7:23 am in Analyst Calls, , , , , , , , , , ,

The Business Day in Global Warming (SWY, BRK-A,TM, SPWR)

Safeway Inc. (NYSE:SWY) has announced a new environmental project to power 23 California stores with renewable solar energy. The company installed solar panels atop a newly renovated Safeway Lifestyle store in Dublin, California and plans to extend the program to nearly two dozen stores.  Congressman Jerry McNerney joined on a tour of the store’s rooftop solar panel array. The unit is currently generating electricity to power the 55,000-square-foot retail facility. 

NetJets, a subsidiary of Berkshire Hathaway (NYSE:BRK-A), unveiled details of a multifaceted initiative to address the environmental impact of the company’s flights and other operations and strengthen its response to climate change and other environmental challenges.  The company retained the services of Esty Environmental Partners, a leader in corporate environmental strategy.

Chicago Tribune reported that The City of Chicago has signed an $8.7 million contract to buy up to 300 hybrid vehicles made by Toyota (NYSE:TM): 100 Prius sedans, 100 Camry models and 100 Highlander SUVs from Northside Toyota in the next three years.

SunPower Corp. (NASDAQ:SPWR), a Silicon Valley-based solar manufacturer, today announced a new partnership with GRID Alternatives, a San Francisco-based nonprofit organization, to bring the power of solar energy to low-income families in need.

This is from earlier in the week, but worth a read.  The Erb Institute for Global Sustainable Enterprise at the University of Michigan today announced that many companies who voluntarily participate in the U.S. Department of Energy’s program to report reductions of greenhouse gas (GHG) emissions tend to have increased emissions but report reductions.

With oil hitting $80 a barrel, alternative energy is going to stay front and center regardless of any political issues around the topic.

 

Jon C. Ogg
September 13, 2007

As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 24/7 Wall St. covers it.  Green business has become big business, and this affects many public companies today.

Posted on: September 13, 2007 – 6:33 pm in Alternative Energy, , , , , , , , , , ,

Weighing Earnings & FTC Review At Whole Foods (WFMI, OATS, KR, SWY)

Whole Foods Market Inc. (NASDAQ:NASDAQ) has much more than just earnings to deal with this week.  The company is expected to report earnings and revenues on Tuesday at $0.33 EPS and $1.54 Billion, according to First Call.  The company is also meeting the FTC over the challenge of its acquisition of Wild Oats (NASDAQ:OATS).  That two day hearing starts tomorrow and we’ll likely have the earnings before we have a clear decision that further blocks or unblocks the $18.50 per share buyout of Wild Oats.

There is another key issue.  We haven’t really heard a peep out of the company in roughly two weeks, and we have ourselves called for at least a partial or temporary resignation or withdrawal of Chairman & CEO John Mackey.  The issue is that he doesn’t really need to leave entirely.  He can maintain his Chairman position as the company’s founder, but this will signal he is at least willing to let the company have a more removed face to deal with regulators over the deal and to deal with the SEC inquiries over the "RAHODEB" message board posts.  After all, he even went on a massive rant and tirade on the Whole Foods Blogs.  What Mackey did was foolish and dumb, but the truth is that the business cycle has changed (thanks to many of his efforts) and the company may need a less-eccentric leader to help it fend off competition from lower-price competitors that sell the same products.

Whole Foods on a results basis is in somewhat of a Catch-22.  Very few are expecting great upside or great guidance.  After all, Kroger (NYSE:KR) and Safeway (NYSE:SWY) are able to offer many of the same exact goods now and for prices at much lower levels.  Don’t take this too much against the company, because the truth is that the company will continue to be profitable and it has already established itself as THE premium brand for healthy and organic foods out of any nationwide chain grocer. 

Regardless of what traditional grocery stores do, its status will remain as the leader and the premium brand.  It boils down to what premium Wall Street is willing to accept, and right now Whole Foods still has roughly a 50% premium to the earnings multiples of Kroger and Safeway.  That may act as a ceiling while either the "E catches up to the P" or while the street determines a fair ‘multiple premium’ for the stock. 

Lastly, the short selling has increased from 19.1+ million in June up to more than 24.4 million shares in July.  That can’t be a surprise considering the latest shenanigans out of Mackey.  But that could also create a major wave of short covering if the company can convey that things are going to be better than OK.  Wild Oats still trades at more than a $3.00 discount to its $18.50 per share buyout price, and Whole Foods is only about 3% above its most recent 52-week lows.

Jon C. Ogg
July 30, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 30, 2007 – 1:17 pm in Earnings, Food, Mergers and Buy Outs, Regulation, , , , , ,

Pre-Market Analyst Calls (July 20, 2007)

ADSK cut to Hold at Citigroup.
ALEX cut to Mkt Perform at Wachovia.
ALVR cut to Sector Perform at CIBC.
BMI cut to Neutral at Baird.
CLWR cut to Hold at Jefferies.
CYBS cut to Mkt Perform at JMP Securities.
FFCH raised to Neutral at Sun Trust Robinson Humphrey.
KR cut to Hold at BB&T.
HSY cut to Peer Perform at Bear Stearns.
ITT cut to Neutral at JPMorgan.
MAN raised to Buy at B of A.
NUE raised to Outperform at Credit Suisse.
PFGC cut to Hold at BB&T.
RTSX started as Buy at Deutsche Bank.
SLG raised to Outperform at Wachovia.
STX raised to Outperform at Bear Stearns.
SWY cut to Hold at BB&T.
SYY cut to Hold at BB&T.
TRN started as Overweight at JPMorgan.
WLSC cut to Equal Weight at Lehman.
X cut to Neutral at Credit Suisse.

Jon C. Ogg
July 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 20, 2007 – 6:28 am in Analyst Calls, , , , , , , , , , , ,

Pre-Market Analyst Calls (July 13, 2007)

AOB started as Outperform at CIBC.
AUY started asOutperform at Credit Suisse.
BGFV cut to Sector Perform at CIBC.
BJ raised to Equal Weight at Lehman.
BLK started as Outperform at Wachovia.
CCL raised to Overweight at JPMorgan.
CHE cut to Hold at Deutsche Bank.
CIT cut to Sector PErform at CIBC.
CREE started as Hold at Deutsche Bank.
DWA started as Buy at Stifel Nicolaus.
EMC cut to Mkt Perform at Morgan Keegan.
FRO cut to Reduce at UBS.
HAL raised to Outperform at Credit Suisse.
HDB started as Buy at Jefferies.
IBN started as Buy at Jefferies.
NATI raised to Overweight at Thomas Weisel.
NDN raised to Buy at Deutsche Bank.
PPDI cut to Hold at Jefferies.
RCL raised to Overweight at JPMorgan.
RNOW started as Hold at Cantor Fitzgerald.
RSH cut to Sell at B of A.
SEB raised to Buy at Jefferies.
SWK started as Neutral at B of A.
SWY raised to Equal Weight at Lehman.
VRSN raised to Buy at Jefferies.
VSCN cut to Mkt Perform at FBR.
WON cut to Sell at Citigroup.
ZBRA raised to Overweight at Thomas Weisel.

Jon C. Ogg
July 13, 2007

Posted on: July 13, 2007 – 6:43 am in Analyst Calls, , , , , , , , , , , , , , , , , , , , , , , ,

Whole Foods: Complicated Earnings Report Doesn’t Help Slowing Growth

Whole Foods Market, Inc. (WFMI-NASDAQ) is trading lower by more than 4% in after-hours trading down to $43.83.  This earnings release is one of the more complicated earnings releases that this company has made and I have been reviewing this one for at least 9 years.  The 52-week lows on this one are $42.13, and those lows are actually the lows for more than 2-years. 

Based on the earnings release and lack of any set and formal guidance, we’ll hold off until the conference call clears this issue up.  Longer term, the Company’s goal is to reach $12 billion in sales in fiscal year 2010.  It is also working with the FTC to close its proposed Wild oats merger.

Competition: What is genuinely happening here is fairly easy to see and fairly easy to break-down as to why the stock is remaining weak.  The company’s competitive advantage to traditional grocery stores is shrinking.  Kroger (KR-NYSE) has made many many inroads into organic and higher-end groceries, and most Whole Foods stores are now to the point that a larger portion of the items are conventionally grown rather than being "organic only."  That isn’t a bad thing because it has widened out the customer base.  If you go compare the 2-year chart sine Whole Foods peaked, you will easily see this even if you avoid both stores.   Even Wal-Mart (WMT-NYSE) has made some entrance into organic food sales, although it is hard to imagine people trading in Whole Foods for Wal-Mart.  That’s even more true if you count that Wal-Mart cheated on some organic markings (said they were errors).  Other grocery stores are on the same bandwagon, so the company is under fire.

Multiples: The earnings multiple of Whole Foods is coming down, and that needs to compress some more.  The honest truth is that Whole Foods should ALWAYS command a higher earnings multiple to basic grovery store chains.  It has higher-end customers, it has premium stores, and it has premium products.  But the degree to which people are willing to pay a higher multiple is still coming in.  This may be one of the last quarters that the company trades with a P/E ratio north of 30, yet Kroger (KR) and Safeway (SWY-NYSE) trade with P/E ratios under 20.  Where the discrepancy comes down to is the part hard to figure out.  If grocers are going to maintain 18-ish multiples, then maybe Whole Foods can command a 25% or 30% premium on that multiple.  But more than a 60% multiple premium today is probably not as realistic for a company that is maturing.

I think Whole Foods is still by far the best shopping experience for food out there compared to any pure-play grocery store.  That’s why the company will demand a premium multiple.  But the multiple premium is still compressing abd looks like it needs to compress further.

Jon C. Ogg
May 9, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in any of the companies he covers.

Posted on: May 9, 2007 – 3:44 pm in Earnings, Food, , , , ,