In the latest close session, Kroger (KR) was down 1.08% at $73.55. The stock trailed the S&P 500, which registered a daily gain of 1.14%. Meanwhile, the Dow gained 1.1%, and the Nasdaq, a tech-heavy index, added 1.39%.
Shares of the supermarket chain have appreciated by 2.88% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.54%, and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Kroger in its upcoming release. The company is predicted to post an EPS of $0.99, indicating a 6.45% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $34.07 billion, indicating a 0.47% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $148.7 billion, which would represent changes of +6.49% and +1.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been no change in the Zacks Consensus EPS estimate. At present, Kroger boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Kroger is presently trading at a Forward P/E ratio of 15.62. For comparison, its industry has an average Forward P/E of 15.48, which means Kroger is trading at a premium to the group.
One should further note that KR currently holds a PEG ratio of 2.37. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 3.01 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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The Kroger Co. (KR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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