Back to top

Image: Bigstock

Kroger (KR) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

The latest trading session saw Kroger (KR - Free Report) ending at $55.99, denoting a -1.96% adjustment from its last day's close. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.78%.

Shares of the supermarket chain witnessed a loss of 0.33% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.07% and the S&P 500's gain of 1.67%.

Analysts and investors alike will be keeping a close eye on the performance of Kroger in its upcoming earnings disclosure. In that report, analysts expect Kroger to post earnings of $0.98 per share. This would mark year-over-year growth of 3.16%. Meanwhile, the latest consensus estimate predicts the revenue to be $34.3 billion, indicating a 1.02% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.46 per share and a revenue of $148.76 billion, indicating changes of -6.3% and -0.85%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Kroger boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 12.79. This indicates a discount in contrast to its industry's Forward P/E of 14.27.

Meanwhile, KR's PEG ratio is currently 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Supermarkets industry had an average PEG ratio of 1.88 as trading concluded yesterday.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 41% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Kroger Co. (KR) - free report >>

Published in