In This Article:
In the latest trading session, Kroger (KR) closed at $66.34, marking a -1.7% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq increased by 0.72%.
Shares of the supermarket chain witnessed a loss of 0.95% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 10.27% and the S&P 500's gain of 9.86%.
Analysts and investors alike will be keeping a close eye on the performance of Kroger in its upcoming earnings disclosure. The company is expected to report EPS of $1.44, up 0.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $45.38 billion, up 0.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.74 per share and revenue of $149.08 billion, which would represent changes of +6.04% and +1.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Kroger. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 14.23. This represents a discount compared to its industry's average Forward P/E of 14.25.
We can additionally observe that KR currently boasts a PEG ratio of 2.02. 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 1.76 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.