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Kroger (KR) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with Kroger (KR - Free Report) standing at $52.76, reflecting a -0.81% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.97%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 1.39%.

The the stock of supermarket chain has fallen by 2.42% in the past month, lagging the Retail-Wholesale sector's loss of 2.12% and the S&P 500's loss of 1.85%.

The investment community will be closely monitoring the performance of Kroger in its forthcoming earnings report. The company is forecasted to report an EPS of $0.91, showcasing a 5.21% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $34.09 billion, indicating a 0.69% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.45 per share and a revenue of $148.99 billion, indicating changes of -6.51% and -0.7%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Kroger is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 11.96 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.68.

Meanwhile, KR's PEG ratio is currently 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 1.86.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 17, positioning it in the top 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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