Zacks Industry Outlook Highlights: Kroger, Safeway and GameStop

Business Wire, June 23, 2009

http://www.profit.zacks.com/

CHICAGO -- Zacks.com releases the latest Industry Outlook. Today’s interview is with senior analyst Rob Plaza, who talks about the Retail Industry, including Kroger (NYSE: KR), Safeway (NYSE: SWY) and GameStop (NYSE: GME).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

In the past few months, institutional money has sold defensive names in favor of more discretionary names, as many money managers are anticipating an economic recovery in the second half of the year. We think this investment strategy has left many defensive retail stocks look attractive.

Two stocks in our coverage that we rate as Buys are Kroger (NYSE: KR) and Safeway (NYSE: SWY). Kroger's sales should remain relatively intact. Consumers will still need to shop for groceries even with in a weak economic environment. And we think both stocks are undervalued at current levels.

Another stock that we like is GameStop (NYSE: GME), which isn't a traditional defensive name, but its results have remained strong throughout this downturn. Expectations are low for the second half of the year, and we expect the company to top those expectations.

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