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Kroger (KR) Stock Moves -2.24%: What You Should Know

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Kroger (KR - Free Report) closed the most recent trading day at $67.60, moving -2.24% from the previous trading session. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq depreciated by 0.16%.

The supermarket chain's stock has climbed by 7.18% in the past month, exceeding the Retail-Wholesale sector's loss of 3.79% and the S&P 500's gain of 1.16%.

The upcoming earnings release of Kroger will be of great interest to investors. It is anticipated that the company will report an EPS of $1.04, marking a 6.12% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $34.31 billion, showing a 2.02% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.79 per share and a revenue of $148.79 billion, representing changes of +7.16% and +1.13%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, Kroger possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 14.45. This indicates a discount in contrast to its industry's Forward P/E of 16.82.

Meanwhile, KR's PEG ratio is currently 2.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Supermarkets industry had an average PEG ratio of 2.4 as trading concluded yesterday.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons 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.

To follow KR in the coming trading sessions, be sure to utilize Zacks.com.


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