Kroger (KR) closed at $64.55 in the latest trading session, marking a -4.01% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.61%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 1.19%.
Coming into today, shares of the supermarket chain had gained 2.05% in the past month. In that same time, the Retail-Wholesale sector lost 2.5%, while the S&P 500 gained 4.44%.
Investors will be eagerly watching for the performance of Kroger in its upcoming earnings disclosure. In that report, analysts expect Kroger to post earnings of $1.58 per share. This would mark year-over-year growth of 6.04%. At the same time, our most recent consensus estimate is projecting a revenue of $45.4 billion, reflecting a 0.62% rise from the equivalent quarter last year.
KR's full-year Zacks Consensus Estimates are calling for earnings of $5.24 per share and revenue of $149.76 billion. These results would represent year-over-year changes of +8.04% and +1.44%, respectively.
Any recent changes to analyst estimates for Kroger should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.02% fall in the Zacks Consensus EPS estimate. Currently, Kroger is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Kroger is holding a Forward P/E ratio of 12.83. This signifies a discount in comparison to the average Forward P/E of 14.81 for its industry.
Meanwhile, KR's PEG ratio is currently 1.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Supermarkets industry stood at 1.99 at the close of the market yesterday.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).