Kroger (KR) closed at $59.12 in the latest trading session, marking a +0.37% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 1.54%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 1.63%.
Coming into today, shares of the supermarket chain had lost 6.95% in the past month. In that same time, the Retail-Wholesale sector lost 4.27%, while the S&P 500 lost 2.2%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.09, indicating a 18.66% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $34.52 billion, reflecting a 6.87% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.44 per share and a revenue of $147.57 billion, indicating changes of -6.72% and -1.65%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kroger. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Kroger is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Kroger is currently exchanging hands at a Forward P/E ratio of 13.27. Its industry sports an average Forward P/E of 13.36, so one might conclude that Kroger is trading at a discount comparatively.
We can additionally observe that KR currently boasts a PEG ratio of 2.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. KR's industry had an average PEG ratio of 2.34 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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