Headquartered in Cincinnati, Ohio, The Kroger Co. (KR) is a leading American retail company known for its grocery, multi-department, and convenience stores. With a market cap of $38.90 billion, Kroger is one of the largest supermarket chains in the U.S., serving millions of customers through its vast network of stores and digital platforms.
Shares of KR have significantly underperformed the broader market over the past year. The stock has gained 8.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. However, in 2024, KR stock is up 17.9%, outpacing the SPX’s 8.7% rally on a YTD basis.
Narrowing the focus, Kroger has outperformed the Vanguard Consumer Staples Index Fund ETF (VDC) over the past year. The exchange-traded fund has gained 5%, compared to KR’s returns for the period. Also, the stock's double-digit YTD gains are ahead of the exchange-traded fund's 7.9% returns over the same time frame.
On Jun. 20, KR reported its Q1 earnings, beating Wall Street’s expectations for revenue and EPS. However, Kroger shares fell over 3% because of a relatively weak forecast.
For the current fiscal year, ending in January 2025, analysts expect KR’s EPS to decline 6.5% year over year to $4.45. However, the company’s earnings surprise history is impressive. It surpassed the consensus estimates in each of the last four quarters.
Among the 18 analysts covering KR stock, the consensus rating is a “Moderate Buy.” That’s based on 11 "Strong Buys," six "Holds," and one “Strong Sell.”
This configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Jun. 21, Krisztina Katai from Deutsche Bank maintained a “Hold” rating on Kroger, with a price target of $53. However, on Jul. 19, Argus Research analyst Chris Graja reaffirmed a “Buy” rating.
The mean price target of $58.80 represents a 9.1% premium to KR’s current price levels. The Street-high price target of $72 suggests an upside potential of 33.6%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
