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Kroger (KR) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest market close, Kroger (KR - Free Report) reached $64.62, with a -1.24% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.27%.

Heading into today, shares of the supermarket chain had lost 3.05% lagging the Retail-Wholesale sector's gain of 4.25% and the S&P 500's gain of 6.9%.

The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. The company is scheduled to release its earnings on June 20, 2025. The company's earnings per share (EPS) are projected to be $1.44, reflecting a 0.7% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $45.38 billion, indicating a 0.25% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.74 per share and a revenue of $149.08 billion, indicating changes of +6.04% and +1.33%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. As of now, Kroger holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Kroger is holding a Forward P/E ratio of 13.8. This represents a discount compared to its industry average Forward P/E of 14.99.

One should further note that KR currently holds a PEG ratio of 1.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. KR's industry had an average PEG ratio of 1.77 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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