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Kroger (KR) Stock Drops Despite Market Gains: Important Facts to Note
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Kroger (KR - Free Report) closed the most recent trading day at $46.15, moving -0.82% from the previous trading session. This move lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the supermarket chain had gained 3.4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.38% and the S&P 500's gain of 0.64% in that time.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.13, signifying a 14.14% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $37.27 billion, showing a 7.01% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.56 per share and a revenue of $150.23 billion, demonstrating changes of +7.8% and +1.33%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Kroger currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Kroger is presently trading at a Forward P/E ratio of 10.2. This valuation marks a discount compared to its industry's average Forward P/E of 13.66.
Also, we should mention that KR has a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.03.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Kroger (KR) Stock Drops Despite Market Gains: Important Facts to Note
Kroger (KR - Free Report) closed the most recent trading day at $46.15, moving -0.82% from the previous trading session. This move lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the supermarket chain had gained 3.4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.38% and the S&P 500's gain of 0.64% in that time.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.13, signifying a 14.14% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $37.27 billion, showing a 7.01% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.56 per share and a revenue of $150.23 billion, demonstrating changes of +7.8% and +1.33%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Kroger currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Kroger is presently trading at a Forward P/E ratio of 10.2. This valuation marks a discount compared to its industry's average Forward P/E of 13.66.
Also, we should mention that KR has a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.03.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.