In the latest trading session, Kroger (KR) closed at $32.78, marking a -0.09% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.92%, and the tech-heavy Nasdaq gained 0.51%.
KR will be looking to display strength as it nears its next earnings release. On that day, KR is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 23.61%. Our most recent consensus estimate is calling for quarterly revenue of $39.99 billion, up 7.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $126.38 billion. These totals would mark changes of +12.27% and +3.35%, respectively, from last year.
Any recent changes to analyst estimates for KR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 3.81% higher. KR is currently a Zacks Rank #2 (Buy).
Digging into valuation, KR currently has a Forward P/E ratio of 13.31. This valuation marks a premium compared to its industry's average Forward P/E of 11.78.
Also, we should mention that KR has a PEG ratio of 2.73. 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 2.36 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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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