The Kroger Co.
), one of the largest grocery retailers, to beat expectations when
it reports first-quarter fiscal 2014 results before the market
opens on Jun 19, 2014. In the last quarter, it posted a positive
Why a Likely Positive Surprise?
Our proven model shows that Kroger is likely to beat earnings
because it has the right combination of two key
Positive Zacks ESP:
Kroger currently has an
of +1.91%. This is because the Most Accurate estimate stands at
$1.07, while the Zacks Consensus Estimate is pegged at $1.05.
Zacks Rank #2 (Buy):
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings estimates. The
Sell-rated stocks (Zacks Rank #4 and 5) should never be considered
going into an earnings announcement.
The combination of Kroger's Zacks Rank #2 (Buy) and +1.91% ESP
makes us very confident regarding a positive earnings beat on Jun
What is Driving the Better-than-Expected Earnings?
A dominant position among the nation's largest grocery retailers
enables Kroger to sustain growth, expand store base and boost
market share. It also remains well positioned to deliver higher
earnings, primarily through strong super market sales growth.
Management also continues to deploy capital to concentrate more on
remodeling, merchandising, and other viable projects.
The company, in the last four quarters, has outperformed the
Zacks Consensus Estimate by an average of 4.4%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
Red Robin Gourmet Burgers Inc.
) has an Earnings ESP of +1.11% and holds a Zacks Rank #2
The Hain Celestial Group, Inc.
) has an Earnings ESP of +1.12% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.16% and a Zacks Rank #3 (Hold).
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