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Kroger (KR) Stock Moves -0.42%: What You Should Know

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In the latest trading session, Kroger (KR - Free Report) closed at $21.15, marking a -0.42% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1%.

Heading into today, shares of the supermarket chain had lost 0.89% over the past month, lagging the Retail-Wholesale sector's gain of 4.16% and the S&P 500's gain of 2.68% in that time.

Investors will be hoping for strength from KR as it approaches its next earnings release. The company is expected to report EPS of $0.42, up 2.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.42 billion, up 1.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $122.88 billion, which would represent changes of +2.84% and +1.41%, respectively, from the prior year.

Any recent changes to analyst estimates for KR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.1% lower within the past month. KR is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note KR's current valuation metrics, including its Forward P/E ratio of 9.77. Its industry sports an average Forward P/E of 14.01, so we one might conclude that KR is trading at a discount comparatively.

It is also worth noting that KR currently has a PEG ratio of 1.5. 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 was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.

To follow KR in the coming trading sessions, be sure to utilize Zacks.com.


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