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Why Kroger (KR) Dipped More Than Broader Market Today

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Kroger (KR - Free Report) closed the most recent trading day at $56.54, moving -0.19% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%.

Shares of the supermarket chain witnessed a gain of 3.72% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.68% and underperforming the S&P 500's gain of 3.77%.

Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 3.16% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $34.3 billion, up 1.02% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.46 per share and revenue of $148.76 billion, indicating changes of -6.3% and -0.85%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Kroger currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 12.69 right now. This represents a discount compared to its industry's average Forward P/E of 14.41.

We can additionally observe that KR currently boasts a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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