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Kroger (KR) ended the recent trading session at $70, demonstrating a -1.89% swing from the preceding day's closing price. This change lagged the S&P 500's 0.74% gain on the day. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.
Shares of the supermarket chain witnessed a gain of 7.88% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 3.18% and the S&P 500's loss of 4.77%.
The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. The company is predicted to post an EPS of $1.44, indicating a 0.7% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.39 billion, up 0.28% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $149.11 billion. These totals would mark changes of +6.04% and +1.35%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, there's been no change in the Zacks Consensus EPS estimate. Kroger is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 15.05 right now. For comparison, its industry has an average Forward P/E of 14.55, which means Kroger is trading at a premium to the group.
Meanwhile, KR's PEG ratio is currently 2.13. 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 1.88 at the close of the market yesterday.