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

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In the latest trading session, Kroger (KR - Free Report) closed at $61.06, marking a +1.14% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.51%.

The supermarket chain's stock has dropped by 1.28% in the past month, falling short of the Retail-Wholesale sector's gain of 5.46% and the S&P 500's gain of 1.67%.

The upcoming earnings release of Kroger will be of great interest to investors. It is anticipated that the company will report an EPS of $1.10, marking a 17.91% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $34.62 billion, reflecting a 6.6% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.44 per share and a revenue of $147.52 billion, representing changes of -6.72% and -1.68%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Kroger is currently a Zacks Rank #3 (Hold).

Digging into valuation, Kroger currently has a Forward P/E ratio of 13.58. Its industry sports an average Forward P/E of 13.64, so one might conclude that Kroger is trading at a discount comparatively.

Meanwhile, KR's PEG ratio is currently 2.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 2.32.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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