In the latest trading session, Kroger (KR) closed at $68.03, marking a +1.37% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 1.86%.
The supermarket chain's stock has climbed by 2.52% in the past month, exceeding the Retail-Wholesale sector's loss of 1.39% and the S&P 500's gain of 2.45%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. On that day, Kroger is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 6.12%. Meanwhile, our latest consensus estimate is calling for revenue of $34.31 billion, up 2.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.79 per share and a revenue of $148.79 billion, demonstrating changes of +7.16% and +1.13%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Right now, Kroger possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Kroger currently has a Forward P/E ratio of 14.02. For comparison, its industry has an average Forward P/E of 17.01, which means Kroger is trading at a discount to the group.
We can additionally observe that KR currently boasts a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 2.38.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
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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