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Kroger (KR) Ascends While Market Falls: Some Facts to Note

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Kroger (KR - Free Report) ended the recent trading session at $66.71, demonstrating a +1.12% change from the preceding day's closing price. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.13%.

Heading into today, shares of the supermarket chain had lost 4.22% over the past month, lagging the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 1.38%.

Market participants will be closely following the financial results of Kroger in its upcoming release. On that day, Kroger is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 6.12%. Our most recent consensus estimate is calling for quarterly revenue of $34.31 billion, up 2.02% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.79 per share and revenue of $148.79 billion. These totals would mark changes of +7.16% and +1.13%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Kroger boasts a Zacks Rank of #2 (Buy).

In the context of valuation, Kroger is at present trading with a Forward P/E ratio of 13.79. This represents a discount compared to its industry average Forward P/E of 15.59.

One should further note that KR currently holds a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Supermarkets industry had an average PEG ratio of 2.34 as trading concluded yesterday.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 19, positioning it in the top 8% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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