Kroger (KR) closed at $22.28 in the latest trading session, marking a +1.64% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.39%.
Coming into today, shares of the supermarket chain had gained 0.55% in the past month. In that same time, the Retail-Wholesale sector lost 6.28%, while the S&P 500 lost 4.84%.
KR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.42, up 2.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.42 billion, up 1.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.17 per share and revenue of $122.88 billion. These totals would mark changes of +2.84% and +1.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for KR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. 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 10.08. This represents a discount compared to its industry's average Forward P/E of 12.85.
It is also worth noting that KR currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. KR's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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