Headwinds, opportunity for grocery stocks

Headwinds, opportunity for grocery stocks

“I think there’s a healthy level of skepticism [about conventional supermarket stocks] across all investors, because they had performed so well in 2013. People look at the performance of Safeway or Kroger or Supervalu, and they say there is absolutely no reason for the change in valuation.” — KAREN SHORT     Deutsche Bank analyst  

Despite indications that the economy is continuing to improve, some analysts question whether the robust gains that food retailing stocks enjoyed last year can be sustained in 2014.

Seventeen of the 23 North American food retailing and wholesaling stocks tracked by SN notched double-digit gains in share price in 2013, and only three stocks lost value during the year, despite little change in the fundamental performances of most companies.

“I think there’s a health

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