In the latest trading session, Kroger (KR) closed at $33.85, marking a +0.36% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the supermarket chain had gained 6.04% in the past month. In that same time, the Retail-Wholesale sector gained 8.18%, while the S&P 500 gained 2.96%.
KR will be looking to display strength as it nears its next earnings release. In that report, analysts expect KR to post earnings of $0.50 per share. This would mark year-over-year growth of 13.64%. Our most recent consensus estimate is calling for quarterly revenue of $29.66 billion, up 5.31% from the year-ago period.
KR's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $129.22 billion. These results would represent year-over-year changes of +29.09% and +5.67%, respectively.
Any recent changes to analyst estimates for KR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 7.47% higher. KR is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, KR is currently trading at a Forward P/E ratio of 11.87. Its industry sports an average Forward P/E of 18, so we one might conclude that KR is trading at a discount comparatively.
We can also see that KR currently has a PEG ratio of 2.16. 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. KR's industry had an average PEG ratio of 2.44 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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