Kroger (KR - Free Report) closed at $35.68 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.78%, and the tech-heavy Nasdaq gained 0.68%.
Coming into today, shares of the supermarket chain had gained 2.59% in the past month. In that same time, the Retail-Wholesale sector gained 12.26%, while the S&P 500 gained 9.15%.
KR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.50, up 13.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.66 billion, up 5.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $129.22 billion, which would represent changes of +29.09% and +5.67%, respectively, from the prior year.
Any recent changes to analyst estimates for KR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KR is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note KR's current valuation metrics, including its Forward P/E ratio of 12.43. For comparison, its industry has an average Forward P/E of 17.58, which means KR is trading at a discount to the group.
Also, we should mention that KR has a PEG ratio of 2.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KR in the coming trading sessions, be sure to utilize Zacks.com.