In the latest close session, Kroger (KR) was down 2.24% at $65.90. The stock's performance was behind the S&P 500's daily loss of 1.56%. Meanwhile, the Dow experienced a drop of 0.84%, and the technology-dominated Nasdaq saw a decrease of 2.16%.
The supermarket chain's stock has dropped by 1.73% in the past month, exceeding the Retail-Wholesale sector's loss of 2.47% and lagging the S&P 500's loss of 0.26%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. 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, the latest consensus estimate predicts the revenue to be $34.31 billion, indicating a 2.02% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.79 per share and revenue of $148.79 billion, which would represent changes of +7.16% and +1.13%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Kroger is currently a Zacks Rank #3 (Hold).
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 14.09. This valuation marks a discount compared to its industry average Forward P/E of 15.07.
Also, we should mention that KR has a PEG ratio of 1.96. 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. The Retail - Supermarkets was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 29% 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.
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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