The momentum gathered from the better-than-expected
fourth-quarter fiscal 2012 results on the back of its
customer-centric business model, facilitated the shares of
The Kroger Company
) to attain a new 52-week high for the 3rd consecutive week.
After hitting a high of $31.41 on Mar 13 and $32.10 on Mar 20,
shares of Kroger further soared to a new high of $33.25
yesterday. This Zacks Rank #2 (Buy) stock eventually closed at
$33.10, recording a healthy year-to-date return of roughly 26.2%.
The company currently trades at a forward P/E of 11.97x, a 14.6%
discount to the peer group average of 14.01x.
Kroger's dominant position among the nation's largest grocery
retailers enables it to sustain growth in its top and bottom
lines, expand its store base, and boost its market share.
Moreover, Kroger's Customer 1
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
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.
Kroger, which faces stiff competition from
Wal-Mart Stores Inc.
), now envisions fiscal 2013 earnings between $2.71 and $2.79 per
share, reflecting year-over-year growth of 8% to 11%, which is
equivalent to the company's long-term rate.
The Zacks Consensus Estimate for fiscal 2013 rose 5.3% to
$2.76 per share over the last 30 days. For fiscal 2014, the Zacks
Consensus Estimate advanced 4.9% over the same timeframe to $3.00
Alongside, companies like
Costco Wholesale Corporation
) crafted new 52-week highs on Wednesday.
COSTCO WHOLE CP (COST): Free Stock Analysis
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WAL-MART STORES (WMT): Free Stock Analysis
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