Kroger (KR) closed the most recent trading day at $62.11, moving -2.48% from the previous trading session. This change lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the supermarket chain had gained 1.56% in the past month. In that same time, the Retail-Wholesale sector gained 4.12%, while the S&P 500 gained 0.38%.
The upcoming earnings release of Kroger will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.2, reflecting a 5.26% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $35.18 billion, reflecting a 2.55% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.78 per share and a revenue of $148.1 billion, representing changes of +6.94% and +0.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kroger. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Kroger currently has a Forward P/E ratio of 13.31. This indicates a discount in contrast to its industry's Forward P/E of 15.77.
Investors should also note that KR has a PEG ratio of 1.79 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Supermarkets was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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