Kroger (KR) closed the most recent trading day at $65.90, moving -1.98% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Heading into today, shares of the supermarket chain had lost 8.18% over the past month, lagging the Retail-Wholesale sector's gain of 12.69% and the S&P 500's gain of 9.3%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.58, signifying a 6.04% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $45.4 billion, showing a 0.62% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.25 per share and revenue of $149.76 billion, which would represent changes of +8.25% and +1.44%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. As of now, Kroger holds a Zacks Rank of #3 (Hold).
Looking at valuation, Kroger is presently trading at a Forward P/E ratio of 12.8. Its industry sports an average Forward P/E of 15.13, so one might conclude that Kroger is trading at a discount comparatively.
It is also worth noting that KR currently has a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 2.16.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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The Kroger Co. (KR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).