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Kroger (KR) Dips More Than Broader Markets: What You Should Know

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Kroger (KR - Free Report) closed at $48.28 in the latest trading session, marking a -1.35% move from the prior day. This change lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 1.39%.

Heading into today, shares of the supermarket chain had gained 1.83% over the past month, outpacing the Retail-Wholesale sector's loss of 0.71% and the S&P 500's loss of 0.68% 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 $1.41, down 2.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $45.38 billion, up 1.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.51 per share and revenue of $152.03 billion, which would represent changes of +6.62% and +2.54%, respectively, from the prior year.

Any recent changes to analyst estimates for Kroger should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kroger currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Kroger currently has a Forward P/E ratio of 10.84. This represents a discount compared to its industry's average Forward P/E of 14.32.

Meanwhile, KR's PEG ratio is currently 1.81. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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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