Kroger (KR) closed the most recent trading day at $65.87, moving -1.35% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 1.18%.
The supermarket chain's stock has climbed by 11.86% in the past month, exceeding the Retail-Wholesale sector's gain of 2.94% and the S&P 500's loss of 0.79%.
Market participants will be closely following the financial results of Kroger in its upcoming release. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 10.48% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $34.57 billion, indicating a 2.1% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.2 per share and a revenue of $150.67 billion, indicating changes of +7.22% and +2.05%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Kroger currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Kroger is currently being traded at a Forward P/E ratio of 12.85. For comparison, its industry has an average Forward P/E of 14.3, which means Kroger is trading at a discount to the group.
We can additionally observe that KR currently boasts a PEG ratio of 1.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.91 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 228, finds itself in the bottom 8% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The Kroger Co. (KR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).