SuperValu Inc (SVU) grocery chain was boosted sharply upward on January 8 after revised earnings estimates. The stock now is “strong buy” with Zacks Investment Research Inc, and since March 31 has surged to $11.63 from $9.29.
SuperValu measure up with larger-cap picks in the hedge fund portfolio of Jana Partners LLC of New York, namely Starz (STRZA), Lions Gate Entertainment Corp (LGF), and Pinnacle Foods Inc (PF).
Few investors are enthusiastic enough to buy underrated stocks that are considered too far out of the mainstream. Yet the rationale behind reviewing such stock picks is simple: it’s generally a lot easier for a $5 stock to go to $10 than for a $50 stock to go to $100.