Yahoo Finance Kroger (KR) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Kroger (KR) closed at $45.33, marking a -1.37% move from the previous day. This move lagged the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq added 10.45%.
Coming into today, shares of the supermarket chain had lost 7.04% in the past month. In that same time, the Retail-Wholesale sector gained 0.74%, while the S&P 500 gained 1.05%.
Investors will be hoping for strength from Kroger as it approaches its next earnings release. In that report, analysts expect Kroger to post earnings of $1.41 per share. This would mark a year-over-year decline of 2.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Investors might also notice recent changes to analyst estimates for Kroger. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kroger is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Kroger currently has a Forward P/E ratio of 10.18. For comparison, its industry has an average Forward P/E of 12.78, which means Kroger is trading at a discount to the group.
Also, we should mention that KR has a PEG ratio of 1.7. 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. KR's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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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The Kroger Co. (KR) : Free Stock Analysis Report
