Kroger (KR) Stock Sinks As Market Gains: Here's Why

The most recent trading session ended with Kroger (KR) standing at $51.64, reflecting a -0.65% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.35%.

Coming into today, shares of the supermarket chain had lost 7.01% in the past month. In that same time, the Retail-Wholesale sector lost 0.54%, while the S&P 500 gained 3.25%.

The upcoming earnings release of Kroger will be of great interest to investors. The company's earnings report is expected on June 20, 2024. The company's upcoming EPS is projected at $1.33, signifying a 11.92% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $45.02 billion, showing a 0.31% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.43 per share and revenue of $148.12 billion, which would represent changes of -6.93% and -1.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Kroger. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Right now, Kroger possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Kroger is at present trading with a Forward P/E ratio of 11.73. Its industry sports an average Forward P/E of 12.43, so one might conclude that Kroger is trading at a discount comparatively.

Also, we should mention that KR has a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 1.94.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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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.

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