Kroger (KR) Gains As Market Dips: What You Should Know
Kroger (KR) closed the most recent trading day at $44.54, moving +0.27% from the previous trading session. This change outpaced the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today's trading, shares of the supermarket chain had lost 2.89% over the past month. This has lagged the Retail-Wholesale sector's gain of 10.67% and the S&P 500's gain of 8.32% in that time.
Wall Street will be looking for positivity from Kroger as it approaches its next earnings report date. On that day, Kroger is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 2.2%. Our most recent consensus estimate is calling for quarterly revenue of $34.81 billion, up 5.32% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Kroger. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. Kroger is currently a Zacks Rank #3 (Hold).
Digging into valuation, Kroger currently has a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 11.49, which means Kroger is trading at a discount to the group.
Investors should also note that KR has a PEG ratio of 1.72 right now. 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. KR's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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The Kroger Co. (KR) : Free Stock Analysis Report
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