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Kroger (KR) closed at $58.57 in the latest trading session, marking a -0.32% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.22%.
The the stock of supermarket chain has fallen by 4.97% in the past month, lagging the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.10, marking a 17.91% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $34.62 billion, reflecting a 6.6% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.44 per share and a revenue of $147.52 billion, signifying shifts of -6.72% and -1.68%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Kroger is at present trading with a Forward P/E ratio of 13.22. This expresses a discount compared to the average Forward P/E of 13.34 of its industry.
It's also important to note that KR currently trades at a PEG ratio of 2.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Supermarkets industry stood at 2.34 at the close of the market yesterday.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 21% of over 250 industries.