The Kroger Company
), an S&P 500 company, is slated to report its fourth-quarter
fiscal 2012 results on Mar 7. In the last quarter it posted a
positive surprise of 7%. Let's see how things are shaping up for
Growth Factors this Past Quarter
A dominant position among the nation's largest grocery
retailers enables Kroger to sustain growth in both its top and
bottom line, expand its store base, and boost its market share.
The company's strong corporate and national brands helped gain
customer loyalty. These factors, along with the Customer 1st
strategy and effective cost management helped the company to post
better-than-expected results in the last quarter.
Our proven model does not conclusively show that Kroger is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
)and a Zacks Rank of #1, #2 or #3 for this to happen. This is not
the case here as you will see below.
ESP for Kroger is 0.00%. This is because the Most Accurate
Estimate stands at 70 cents, which is in line with the Zacks
Zacks Rank #3 (Hold):
Kroger's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
J&J Snack Foods Corp.
), Earnings ESP of +5.00% and Zacks Rank #1 (Strong Buy)
Kraft Foods Group, Inc
), Earnings ESP of +3.18% and Zacks Rank #2 (Buy)
), Earnings ESP of +2.78% and Zacks Rank #2 (Buy)
J&J SNACK FOODS (JJSF): Free Stock Analysis
KROGER CO (KR): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis
SAFEWAY INC (SWY): Free Stock Analysis Report
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