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Kroger (KR) closed the most recent trading day at $47.72, moving +1.71% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.16%.
Heading into today, shares of the supermarket chain had gained 8.59% over the past month, outpacing the Retail-Wholesale sector's loss of 10.9% and the S&P 500's loss of 5.39% in that time.
Kroger will be looking to display strength as it nears its next earnings release. On that day, Kroger is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 13.58%. Our most recent consensus estimate is calling for quarterly revenue of $32.23 billion, up 4.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $137.43 billion. These totals would mark changes of +0.58% and +3.72%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. 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 13.45 right now. Its industry sports an average Forward P/E of 12.58, so we one might conclude that Kroger is trading at a premium comparatively.
Investors should also note that KR has a PEG ratio of 1.61 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. The Retail - Supermarkets was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.
To follow KR in the coming trading sessions, be sure to utilize Zacks.com.
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