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Kroger (KR) Dips More Than Broader Market: What You Should Know

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In the latest trading session, Kroger (KR - Free Report) closed at $56.27, marking a -0.53% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.33%.

Coming into today, shares of the supermarket chain had gained 1.22% in the past month. In that same time, the Retail-Wholesale sector gained 1.01%, while the S&P 500 gained 0.41%.

Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.98, signifying a 3.16% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.3 billion, up 1.02% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.46 per share and a revenue of $148.76 billion, signifying shifts of -6.3% and -0.85%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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, the Zacks Consensus EPS estimate has remained steady. Kroger is currently sporting a Zacks Rank of #2 (Buy).

From a valuation perspective, Kroger is currently exchanging hands at a Forward P/E ratio of 12.67. This indicates a discount in contrast to its industry's Forward P/E of 13.86.

It's also important to note that KR currently trades at a PEG ratio of 0.88. 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 currently had an average PEG ratio of 1.82 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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