In the latest trading session, Kroger (KR) closed at $67.03, marking a +1.33% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.82%.
The supermarket chain's shares have seen a decrease of 2.28% over the last month, not keeping up with the Retail-Wholesale sector's loss of 1.21% and the S&P 500's loss of 0.31%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.04, indicating a 6.12% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $34.31 billion, up 2.02% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.79 per share and revenue of $148.79 billion. These totals would mark changes of +7.16% and +1.13%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Kroger. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Kroger is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 13.82 right now. This expresses a discount compared to the average Forward P/E of 14.89 of its industry.
One should further note that KR currently holds a PEG ratio of 1.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Supermarkets industry had an average PEG ratio of 2.21 as trading concluded yesterday.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 75, which puts 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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