The Kroger Company
) attained a new 52-week high of $31.41 on Wednesday, Mar 13,
gaining momentum from the company's better-than-expected
fourth-quarter fiscal 2012 results. The shares of this Zacks Rank
#2 (Buy) grocery retailer eventually closed at $31.31, recording
a healthy year-to-date return of approximately 19.4%. Kroger
currently trades at a forward P/E of 11.41x in line with the peer
A dominant position among the nation's largest grocery
retailers enables Kroger to sustain growth in top and bottom
lines, expand its store base, and boost its market share. The
company's strong corporate and national brands helped gain
customers loyalty. Its long-term earnings per share growth rate
target equates to 8% to 11%.
Kroger's customer-centric business model provides a strong
value proposition to consumers. It is well positioned to continue
its growth momentum primarily through identical supermarket sales
The company posted stronger-than-anticipated fourth-quarter
fiscal 2012 results, on the back of Customer 1st strategy and
cost effective management. 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. The company in the last 4 quarters has
outpaced the Zacks Consensus Estimates by an average of
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.
The Zacks Consensus Estimate for fiscal 2013 rose 4.6% to
$2.74 per share over the last 7 days. For fiscal 2014, the Zacks
Consensus Estimate advanced 3.5% over the same timeframe to $2.97
Other Stocks to Consider
The stock worth considering in the food, drug retail,
wholesale sector includes
), which holds a Zacks Rank #1 (Strong Buy) and
), both of which carry a Zacks Rank #2 (Buy).
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