Chart Pattern Predicts This Stock Could Rise 49% by Year-End: SWY

From a technical analysis standpoint, the chart of Safeway (NYSE: SWY) excites me. First, shares of the second-largest U.S. grocery-store chain have just broken a major downtrend line that dates back almost two years. Second, they have completed a rounding bottom base formed over roughly the past nine months and appear to be headed higher. With an upbeat revenue and earnings outlook, plus a healthy dividend, the stock looks attractive.
The California-based grocery store -- which operates approximately 1,700 locations across the United States and western Canada, and also holds a 49% interest in food and general merchandise retailer Casa Ley, which has 185 outlets in northwestern Mexico -- seems to be on the rise for three reasons:
1. Increased focus on customer loyalty programs;
2. Divesting of key assets; and
3. A shift in upper management.

Loyalty Programs
The company's "just for U" loyalty program helps shoppers save money with digital coupons and personalized specials. In fact, members can save up to 20% on groceries just by being part of the program. Members receive deals specifically tailored to them, based on products they frequently purchase. (more)


Please bookmark us