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Why the Market Dipped But Kroger (KR) Gained Today
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The latest trading session saw Kroger (KR - Free Report) ending at $44.29, denoting a +1.56% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.43%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 2.43%.
The the stock of supermarket chain has fallen by 3.41% in the past month, lagging the Retail-Wholesale sector's loss of 2.31% and the S&P 500's loss of 1.55%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. It is anticipated that the company will report an EPS of $0.90, marking a 2.27% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $33.93 billion, reflecting a 0.78% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.52 per share and a revenue of $150.57 billion, demonstrating changes of +6.86% and +1.56%, respectively, from the preceding year.
Any recent changes to analyst estimates for Kroger should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Kroger is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 9.65. This valuation marks a discount compared to its industry's average Forward P/E of 11.53.
Investors should also note that KR has a PEG ratio of 2.05 right now. 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. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.22.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Kroger (KR) Gained Today
The latest trading session saw Kroger (KR - Free Report) ending at $44.29, denoting a +1.56% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.43%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 2.43%.
The the stock of supermarket chain has fallen by 3.41% in the past month, lagging the Retail-Wholesale sector's loss of 2.31% and the S&P 500's loss of 1.55%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. It is anticipated that the company will report an EPS of $0.90, marking a 2.27% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $33.93 billion, reflecting a 0.78% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.52 per share and a revenue of $150.57 billion, demonstrating changes of +6.86% and +1.56%, respectively, from the preceding year.
Any recent changes to analyst estimates for Kroger should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Kroger is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 9.65. This valuation marks a discount compared to its industry's average Forward P/E of 11.53.
Investors should also note that KR has a PEG ratio of 2.05 right now. 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. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.22.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.