In the latest trading session, Kroger (KR) closed at $64.13, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Heading into today, shares of the supermarket chain had gained 7.55% over the past month, outpacing the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.
The upcoming earnings release of Kroger will be of great interest to investors. The company is predicted to post an EPS of $1.16, indicating a 10.48% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $34.57 billion, showing a 2.1% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $150.77 billion. These totals would mark changes of +7.01% and +2.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. Kroger currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kroger has a Forward P/E ratio of 12.13 right now. This represents a discount compared to its industry average Forward P/E of 14.64.
It's also important to note that KR currently trades at a PEG ratio of 1.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Kroger Co. (KR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).