In the latest trading session, Kroger (KR) closed at $71.46, marking a -1.27% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the supermarket chain witnessed a gain of 1.54% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.05%, and the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Kroger in its upcoming release. On that day, Kroger is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 6.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $34.07 billion, indicating a 0.47% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $148.7 billion. These totals would mark changes of +6.49% and +1.07%, respectively, from last year.
Any recent changes to analyst estimates for Kroger should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 15.21. Its industry sports an average Forward P/E of 15.61, so one might conclude that Kroger is trading at a discount comparatively.
It's also important to note that KR currently trades at a PEG ratio of 2.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Supermarkets industry stood at 1.9 at the close of the market yesterday.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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