Kroger (KR) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with Kroger (KR) standing at $52.31, reflecting a -1.28% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.59%.
Heading into today, shares of the supermarket chain had lost 4.64% over the past month, lagging the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.19% in that time.
Market participants will be closely following the financial results of Kroger in its upcoming release. The company's upcoming EPS is projected at $1.33, signifying a 11.92% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $44.97 billion, down 0.43% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.43 per share and a revenue of $147.97 billion, signifying shifts of -6.93% and -1.38%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kroger. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Kroger holds a Zacks Rank of #4 (Sell).
In terms of valuation, Kroger is currently trading at a Forward P/E ratio of 11.95. This expresses a discount compared to the average Forward P/E of 12.62 of its industry.
Also, we should mention that KR has a PEG ratio of 2. 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 2.1 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
