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Kroger (KR) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Kroger (KR - Free Report) closed at $68.99, marking a -1.64% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.44%.

The supermarket chain's stock has climbed by 1.18% in the past month, exceeding the Retail-Wholesale sector's gain of 0.92% and the S&P 500's gain of 0.87%.

The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. The company's upcoming EPS is projected at $1, signifying a 7.53% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $34.12 billion, up 0.62% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.76 per share and a revenue of $148.81 billion, signifying shifts of +6.49% and +1.15%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Based on our research, we believe these estimate revisions are directly related to near-term 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Right now, Kroger possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Kroger is currently trading at a Forward P/E ratio of 14.72. This signifies a discount in comparison to the average Forward P/E of 15.37 for its industry.

Also, we should mention that KR has a PEG ratio of 2.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.98 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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