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Kroger (KR) Outperforms Broader Market: What You Need to Know

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Kroger (KR - Free Report) closed at $60.09 in the latest trading session, marking a +1.47% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a rise of 0.99%, and the technology-dominated Nasdaq saw an increase of 0.27%.

Shares of the supermarket chain have appreciated by 3.22% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.51% and outperforming the S&P 500's gain of 2.1%.

Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 5, 2024. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 3.16% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $34.3 billion, indicating a 1.02% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.46 per share and a revenue of $148.76 billion, representing changes of -6.3% and -0.85%, respectively, from the prior year.

Any recent changes to analyst estimates for Kroger should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Kroger is holding a Forward P/E ratio of 13.27. Its industry sports an average Forward P/E of 13.67, so one might conclude that Kroger is trading at a discount comparatively.

Meanwhile, KR's PEG ratio is currently 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 1.76.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 14% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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