Advertisement

Kroger (KR) Stock Sinks As Market Gains: What You Should Know

Kroger (KR) closed at $46.07 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Coming into today, shares of the supermarket chain had lost 6.1% in the past month. In that same time, the Retail-Wholesale sector gained 3.86%, while the S&P 500 gained 3.56%.

Kroger will be looking to display strength as it nears its next earnings release, which is expected to be June 15, 2023. In that report, analysts expect Kroger to post earnings of $1.41 per share. This would mark a year-over-year decline of 2.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.38 billion, up 1.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.51 per share and revenue of $152.03 billion, which would represent changes of +6.62% and +2.54%, respectively, from the prior year.

ADVERTISEMENT

Investors should also note any recent changes to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kroger is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Kroger is holding a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 12.9, which means Kroger is trading at a discount to the group.

It is also worth noting that KR currently has a PEG ratio of 1.71. 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 industry currently had an average PEG ratio of 1.71 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

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.

To follow KR in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Kroger Co. (KR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research