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Kroger (KR) Gains As Market Dips: What You Should Know

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In the latest trading session, Kroger (KR) closed at $41.01, marking a +0.76% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.18%.

Prior to today's trading, shares of the supermarket chain had gained 6.07% over the past month. This has outpaced the Retail-Wholesale sector's loss of 3.25% and the S&P 500's gain of 2.44% in that time.

Investors will be hoping for strength from KR as it approaches its next earnings release. In that report, analysts expect KR to post earnings of $0.65 per share. This would mark a year-over-year decline of 10.96%. Meanwhile, our latest consensus estimate is calling for revenue of $30.41 billion, down 0.25% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $132.24 billion, which would represent changes of -11.24% and -0.2%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. KR currently has a Zacks Rank of #3 (Hold).

Investors should also note KR's current valuation metrics, including its Forward P/E ratio of 13.22. This represents a discount compared to its industry's average Forward P/E of 13.45.

We can also see that KR currently has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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