Kroger Attains New 52-Week High - Analyst Blog

By Zacks Equity Research,

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The Kroger Company 's ( KR ) better-than-expected fourth-quarter fiscal 2012 results on the back of its customer-centric business model that facilitated it to record a new 52-week high for the 2 nd consecutive week.

After attaining a high of $31.41 on Mar 13, shares of this grocery retailer further soared to touch a new high of $32.10 yesterday.

Shares eventually closed at $31.87, recording a healthy year-to-date return of roughly 21.5%. The company currently trades at a forward P/E of 11.61x, a 3% discount to the peer group average of 11.97x.

Alongside, companies like Macy's Inc . ( M ), Target Corporation ( TGT ), Gannett Co., Inc ( GCI ) crafted new 52-week highs on Wednesday.

Kroger's dominant position among the nation's largest grocery retailers enables it to sustain growth in top and bottom lines, expand its store base, and boost its market share.

Moreover, Kroger's Customer 1 st strategy provides a strong value proposition to consumers. The company's value offerings further facilitate it to retain customers and in turn generate identical supermarket sales growth.

These measures helped the company post stronger-than-anticipated fourth-quarter fiscal 2012 results. Kroger declared impressive results on Mar 7, 2013, wherein earnings of 88 cents a share beat the Zacks Consensus Estimate of 70 cents, and surged from 50 cents earned in the prior-year quarter. In the last 4 quarters, the company has outpaced the Zacks Consensus Estimate by an average of 11.3%.

Total sales (including fuel center sales) climbed 12.8% to $24,153.1 million from the prior-year quarter, and came ahead of the Zacks Consensus Estimate of $24,053 million. Buoyed by healthy results, management now projects fiscal 2013 earnings between $2.71 and $2.79.

Currently, Kroger holds a Zacks Rank #2 (Buy).

GANNETT INC (GCI): Free Stock Analysis Report

KROGER CO (KR): Free Stock Analysis Report

MACYS INC (M): Free Stock Analysis Report

TARGET CORP (TGT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: GCI , KR , M , TGT

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