We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much You'd Have If You Invested $1000 in Kroger a Decade Ago
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Kroger (KR - Free Report) ten years ago? It may not have been easy to hold on to KR for all that time, but if you did, how much would your investment be worth today?
Kroger's Business In-Depth
With that in mind, let's take a look at Kroger's main business drivers.
The Kroger Co., which operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is launching plant-based products as well as eyeing technological expansion. It acquired meal kit company Home Chef and partnered with British online grocery delivery firm Ocado that reinforces its position in the online ordering, automated fulfillment and home delivery space. It has also introduced grocery delivery service Kroger Ship and inked a deal with driverless car company Nuro.
This Cincinnati, Ohio-based company operates supermarkets under banners including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Harris Teeter, Jay C, King Soopers, Mariano's, Pick 'n Save, QFC, Ralphs and Smith's. Further, it also manufactures and processes certain food products that are sold in its supermarkets.
Kroger’s supermarket and multi-department stores operate under four formats combo stores (combination of food and drug stores), multi-department stores, marketplace stores, and price impact warehouses. The combo stores include natural food and organic sections, pharmacies, general merchandise, and pet centers, as well as offer perishables items such as fresh seafood and organic produce.
The multi-department stores offer a collection of general merchandise products such as apparel, home fashion and furnishings, electronics, automotive products, toys, and fine jewelry. The marketplace stores include full-service grocery and pharmacy departments and a general merchandise area that includes outdoor living products, electronics, home goods, and toys.
The combo stores, multi department stores, and marketplace stores also have fuel centers. The price impact warehouse offers grocery, health, and beauty care items.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Kroger, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2012 would be worth $4,664.48, or a 366.45% gain, as of March 28, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 225.18% and gold's return of 12.92% over the same time frame.
Looking ahead, analysts are expecting more upside for KR.
Shares of Kroger have risen and outpaced the industry in the past year. The company has been undertaking efforts to strengthen position not only with respect to products but also in terms of the way consumers shop. It has been making investments to enhance product freshness and quality as well as expand digital capabilities. Further, it has been augmenting “Our Brands” portfolio by launching new products. Cumulatively, these helped post better-than-expected fourth-quarter fiscal 2021 results, even as the company navigates tight labor and supply chain constraints. The company also registered growth in identical sales, without fuel. Management provided an upbeat outlook for fiscal 2022 projecting identical sales, without fuel, in the band of 2-3%. Kroger remains committed to double its digital business and profitability by the end of 2023.
The stock is up 22.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in Kroger a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Kroger (KR - Free Report) ten years ago? It may not have been easy to hold on to KR for all that time, but if you did, how much would your investment be worth today?
Kroger's Business In-Depth
With that in mind, let's take a look at Kroger's main business drivers.
The Kroger Co., which operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is launching plant-based products as well as eyeing technological expansion. It acquired meal kit company Home Chef and partnered with British online grocery delivery firm Ocado that reinforces its position in the online ordering, automated fulfillment and home delivery space. It has also introduced grocery delivery service Kroger Ship and inked a deal with driverless car company Nuro.
This Cincinnati, Ohio-based company operates supermarkets under banners including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Harris Teeter, Jay C, King Soopers, Mariano's, Pick 'n Save, QFC, Ralphs and Smith's. Further, it also manufactures and processes certain food products that are sold in its supermarkets.
Kroger’s supermarket and multi-department stores operate under four formats combo stores (combination of food and drug stores), multi-department stores, marketplace stores, and price impact warehouses. The combo stores include natural food and organic sections, pharmacies, general merchandise, and pet centers, as well as offer perishables items such as fresh seafood and organic produce.
The multi-department stores offer a collection of general merchandise products such as apparel, home fashion and furnishings, electronics, automotive products, toys, and fine jewelry. The marketplace stores include full-service grocery and pharmacy departments and a general merchandise area that includes outdoor living products, electronics, home goods, and toys.
The combo stores, multi department stores, and marketplace stores also have fuel centers. The price impact warehouse offers grocery, health, and beauty care items.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Kroger, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2012 would be worth $4,664.48, or a 366.45% gain, as of March 28, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 225.18% and gold's return of 12.92% over the same time frame.
Looking ahead, analysts are expecting more upside for KR.
Shares of Kroger have risen and outpaced the industry in the past year. The company has been undertaking efforts to strengthen position not only with respect to products but also in terms of the way consumers shop. It has been making investments to enhance product freshness and quality as well as expand digital capabilities. Further, it has been augmenting “Our Brands” portfolio by launching new products. Cumulatively, these helped post better-than-expected fourth-quarter fiscal 2021 results, even as the company navigates tight labor and supply chain constraints. The company also registered growth in identical sales, without fuel. Management provided an upbeat outlook for fiscal 2022 projecting identical sales, without fuel, in the band of 2-3%. Kroger remains committed to double its digital business and profitability by the end of 2023.
The stock is up 22.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022. The consensus estimate has moved up as well.