In the latest market close, Kroger (KR) reached $69.50, with a +0.78% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.38%.
The supermarket chain's stock has dropped by 4.63% in the past month, falling short of the Retail-Wholesale sector's gain of 12.4% and the S&P 500's gain of 13.07%.
The upcoming earnings release of Kroger will be of great interest to investors. The company is predicted to post an EPS of $1.44, indicating a 0.7% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $45.38 billion, up 0.25% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.74 per share and revenue of $149.08 billion, indicating changes of +6.04% and +1.33%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Kroger. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kroger is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 14.54. This signifies a discount in comparison to the average Forward P/E of 14.73 for its industry.
Also, we should mention that KR has a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 1.81.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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