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Why the Market Dipped But Kroger (KR) Gained Today
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In the latest trading session, Kroger (KR - Free Report) closed at $44.18, marking a +0.66% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.22%.
The supermarket chain's shares have seen a decrease of 0.61% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.32% and the S&P 500's gain of 1.42%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. On that day, Kroger is projected to report earnings of $0.90 per share, which would represent year-over-year growth of 2.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.93 billion, down 0.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.52 per share and revenue of $150.57 billion, which would represent changes of +6.86% and +1.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Kroger boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 9.72. Its industry sports an average Forward P/E of 14.48, so one might conclude that Kroger is trading at a discount comparatively.
We can additionally observe that KR currently boasts a PEG ratio of 2.06. 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. The Retail - Supermarkets industry currently had an average PEG ratio of 1.46 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why the Market Dipped But Kroger (KR) Gained Today
In the latest trading session, Kroger (KR - Free Report) closed at $44.18, marking a +0.66% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.22%.
The supermarket chain's shares have seen a decrease of 0.61% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.32% and the S&P 500's gain of 1.42%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. On that day, Kroger is projected to report earnings of $0.90 per share, which would represent year-over-year growth of 2.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.93 billion, down 0.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.52 per share and revenue of $150.57 billion, which would represent changes of +6.86% and +1.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Kroger. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Kroger boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 9.72. Its industry sports an average Forward P/E of 14.48, so one might conclude that Kroger is trading at a discount comparatively.
We can additionally observe that KR currently boasts a PEG ratio of 2.06. 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. The Retail - Supermarkets industry currently had an average PEG ratio of 1.46 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.