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Kroger (KR) Stock Sinks As Market Gains: What You Should Know
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Kroger (KR - Free Report) closed at $52.03 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the supermarket chain had lost 4.91% in the past month. In that same time, the Retail-Wholesale sector lost 27.01%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from Kroger as it approaches its next earnings release, which is expected to be June 16, 2022. On that day, Kroger is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 6.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.57 billion, up 5.51% from the year-ago period.
KR's full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $142.92 billion. These results would represent year-over-year changes of +4.35% and +3.65%, respectively.
Any recent changes to analyst estimates for Kroger should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 2.21% higher within the past month. Kroger is currently a Zacks Rank #2 (Buy).
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 13.6. For comparison, its industry has an average Forward P/E of 11.15, which means Kroger is trading at a premium to the group.
It is also worth noting that KR currently has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kroger (KR) Stock Sinks As Market Gains: What You Should Know
Kroger (KR - Free Report) closed at $52.03 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the supermarket chain had lost 4.91% in the past month. In that same time, the Retail-Wholesale sector lost 27.01%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from Kroger as it approaches its next earnings release, which is expected to be June 16, 2022. On that day, Kroger is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 6.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.57 billion, up 5.51% from the year-ago period.
KR's full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $142.92 billion. These results would represent year-over-year changes of +4.35% and +3.65%, respectively.
Any recent changes to analyst estimates for Kroger should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 2.21% higher within the past month. Kroger is currently a Zacks Rank #2 (Buy).
Investors should also note Kroger's current valuation metrics, including its Forward P/E ratio of 13.6. For comparison, its industry has an average Forward P/E of 11.15, which means Kroger is trading at a premium to the group.
It is also worth noting that KR currently has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.