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Kroger (KR) closed the latest trading day at $65.06, indicating a +1.04% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 1.71% for the day. Elsewhere, the Dow saw a downswing of 1.7%, while the tech-heavy Nasdaq depreciated by 2.2%.
Heading into today, shares of the supermarket chain had gained 9.94% over the past month, outpacing the Retail-Wholesale sector's gain of 4% and the S&P 500's gain of 2.2% in that time.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 6, 2025. The company is forecasted to report an EPS of $1.09, showcasing a 18.66% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $34.62 billion, down 6.6% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% lower. At present, Kroger boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Kroger currently has a Forward P/E ratio of 13.65. This expresses a discount compared to the average Forward P/E of 13.96 of its industry.
It's also important to note that KR currently trades at a PEG ratio of 2.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Supermarkets was holding an average PEG ratio of 2.47 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.