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Kroger (KR) Gains But Lags Market: What You Should Know
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In the latest trading session, Kroger (KR - Free Report) closed at $43.59, marking a +0.28% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the supermarket chain had lost 3.95% over the past month, outpacing the Retail-Wholesale sector's loss of 11.09% and the S&P 500's loss of 7.36% in that time.
Kroger will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.70, down 13.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.23 billion, up 4.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $137.43 billion, which would represent changes of +0.58% and +3.72%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. Kroger is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 12.46. Its industry sports an average Forward P/E of 12.74, so we one might conclude that Kroger is trading at a discount comparatively.
It is also worth noting that KR currently has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KR's industry had an average PEG ratio of 1.17 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 42, which puts it in the top 17% 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.
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Kroger (KR) Gains But Lags Market: What You Should Know
In the latest trading session, Kroger (KR - Free Report) closed at $43.59, marking a +0.28% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the supermarket chain had lost 3.95% over the past month, outpacing the Retail-Wholesale sector's loss of 11.09% and the S&P 500's loss of 7.36% in that time.
Kroger will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.70, down 13.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.23 billion, up 4.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $137.43 billion, which would represent changes of +0.58% and +3.72%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. Kroger is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 12.46. Its industry sports an average Forward P/E of 12.74, so we one might conclude that Kroger is trading at a discount comparatively.
It is also worth noting that KR currently has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KR's industry had an average PEG ratio of 1.17 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 42, which puts it in the top 17% 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.