Is This Grocer a Buy Today?

Updated

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin helps investors answer the question: Is Safeway a buy today? While the company seems fairly priced, it is occupying an awkward middle ground in the grocery space that could turn out well for it, but ultimately means it's realizing competition from both high- and low-end grocers. With so many options out there like competitors Kroger (NYS: KR) and Whole Foods (NYS: WFM) , investors can probably get more elsewhere.

The retail space, particularly grocery, can be extremely difficult to operate in. But when a company can strike the right balance and run a lean operation, the upside is enormous. That's exactly how we feel about: The Motley Fool's Top Stock for 2012.

Our top pick is an emerging market retailer that's poised to become the Costco of Latin America. With a winning model and stellar operations, we don't see anything besides huge gains from this company. You can uncover this pick today in our special free report. The report is free today but won't be forever. Enjoy, and Fool on!

At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of SUPERVALU. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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