Will Kroger Continue to Rebound on Q2 Results?

What's Happening With KR View more about KR >

Kroger (KR) reports earnings September 12. The grocery chain reports second-quarter numbers before the market open with the consensus calling for earnings of $0.42 per share for the quarter, up a penny from the same period last year. KR shares are down 9.3% on the year.

Technical Analysis

KR was recently trading at $24.93 down $7.81 from its 12-month high and $4.23 above its 12-month low. InvestorsObserver’s Stock Score Report gives KR a 41 long-term technical score and a 48 short-term technical score. The stock has recent support above $22 and recent resistance below $25.5. Of the 15 analysts who cover the stock 5 rate it Strong Buy, 1 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 2 rate it Strong Sell, KR gets a score of 47 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

After a horrible first half of the year, KR shares have trended higher over the last month, but there is enough pessimism in the stock that a big selloff could result from any signs of weakness in the stock. The company has been in cost-cutting mode with store closures in weaker performing markets which is hopes will start to boost earnings growth. Profits are up just 4.2% annually over the last five years and looking ahead earnings are expected to rise at just 5.2% per annum for the next five years. The company will need to deliver consistently better than expected numbers to bring enthusiasm back into the slow growing stock. Last quarter earnings and sales were both in-line and the previous quarter both fell short of estimates. For the stock to build on its recent gains Q2 numbers must fall in-line or slightly better. KR has a forward P/E of just 10.7, so there is a lot of upside potential and analysts have an average price target of $27.63 on the stock.

KR
About Kroger Company (The)

Kroger is the leading American grocer, with 2,764 supermarkets operating under several banners throughout the country as of the end of fiscal 2018. Around 82% of stores have pharmacies, while over half also sell fuel. The company also operated more than 300 fine jewelry stores at the end of fiscal 2018. Kroger features a leading private-label offering and manufactures around a third of its own-brand units (and 43% of its grocery own-label assortment) itself, in 37 food production plants nationwide. Kroger is a top-two grocer in 46 of the 52 major markets in which it operates along with 54 of its 73 secondary markets (as of the end of fiscal 2017, according to IRI data cited by the company). Virtually all of Kroger's sales come from the United States.

  • Last Price:
    $25.82
  • Previous Close:
    $25.22
  • Change:
    $0.60 (2.38%)
  • Open:
    $25.29
  • Volume:
    9,927,603
  • Average Volume (100 Day):
    9,503,729
  • Market Capitalization:
    $20.6 B
  • Day's Range:
    $25.11 - $26.04
  • Dividend Yield:
    2.54%
  • 52-week Range:
    $32 - $20.70
  • P-E:
    12.70
  • EPS:
    $2.04
  • Earnings Date:
    12/5/19
  • Ex Dividend Date:
    8/14/19
  • Sector:
    Consumer Defensive
  • Industry:
    Grocery Stores
  • Analyst Average Recommendation:
    Hold

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