Why the Market Dipped But Kroger (KR) Gained Today
Kroger (KR) ended the recent trading session at $48.53, demonstrating a +0.33% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.55%.
The supermarket chain's stock has climbed by 3.69% in the past month, exceeding the Retail-Wholesale sector's gain of 0.24% and lagging the S&P 500's gain of 3.98%.
The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. The company is scheduled to release its earnings on March 7, 2024. The company is predicted to post an EPS of $1.13, indicating a 14.14% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $37.27 billion, showing a 7.01% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Kroger is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 11.14. For comparison, its industry has an average Forward P/E of 12.01, which means Kroger is trading at a discount to the group.
Meanwhile, KR's PEG ratio is currently 2.52. 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. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 1.24.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The Kroger Co. (KR) : Free Stock Analysis Report
