Kroger (KR) ended the recent trading session at $62.65, demonstrating a -1.99% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Shares of the supermarket chain witnessed a gain of 1.57% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.28%, and outperforming the S&P 500's gain of 0.71%.
The upcoming earnings release of Kroger will be of great interest to investors. On that day, Kroger is projected to report earnings of $1.2 per share, which would represent year-over-year growth of 5.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.18 billion, up 2.55% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.78 per share and revenue of $148.1 billion, which would represent changes of +6.94% and +0.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 a 0.06% fall in the Zacks Consensus EPS estimate. At present, Kroger boasts a Zacks Rank of #3 (Hold).
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 13.36. This represents a discount compared to its industry average Forward P/E of 15.58.
We can additionally observe that KR currently boasts a PEG ratio of 1.79. 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 2.3.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 19% 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.
To follow KR in the coming trading sessions, be sure to utilize 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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