Back to top

Image: Bigstock

Kroger (KR) Rises As Market Takes a Dip: Key Facts

Read MoreHide Full Article

The most recent trading session ended with Kroger (KR - Free Report) standing at $48, reflecting a +0.76% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.6%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.92%.

Shares of the supermarket chain have appreciated by 3.72% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.07% and outperforming the S&P 500's gain of 3.56%.

Analysts and investors alike will be keeping a close eye on 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. At the same time, our most recent consensus estimate is projecting a revenue of $37.27 billion, reflecting a 7.01% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Kroger is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 10.97. This represents a discount compared to its industry's average Forward P/E of 12.02.

It's also important to note that KR currently trades at a PEG ratio of 2.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Supermarkets industry had an average PEG ratio of 1.13 as trading concluded yesterday.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Published in