In the latest trading session, Kroger (KR) closed at $64.17, marking a +1.76% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
Shares of the supermarket chain witnessed a gain of 2.06% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 6.19%, and outperforming the S&P 500's gain of 1.8%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.2, reflecting a 5.26% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $35.17 billion, up 2.51% 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 $148.09 billion. These totals would mark changes of +7.16% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Right now, Kroger possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Kroger is presently being traded at a Forward P/E ratio of 11.94. This denotes a discount relative to the industry average Forward P/E of 15.9.
It's also important to note that KR currently trades at a PEG ratio of 1.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 2.29.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.
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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