Will Strong Earnings Bring Strength Back to Kroger (KR) Stock?

What's Happening With KR View more about KR >

Kroger (KR) reports Q1 results before the market open June 20. Analysts expect the grocery chain to post earnings of $0.72 and revenue of $38.89 billion for the quarter. KR stock has fallen 10.4% on the year.

Technical Analysis

KR was recently trading at $24.63 down $8.11 from its 12-month high and $2.19 above its 12-month low. InvestorsObserver’s Stock Score Report gives KR a 44 long-term technical score and a 42 short-term technical score. The stock has recent support above $22.5 and recent resistance below $25.5. Of the 16 analysts who cover the stock 6 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 49 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

KR stock has struggled over the last year, and anemic earnings growth is likely to keep bearish sentiment on the stock moving forward unless the company is able to start delivering strong earnings beat in the quarters ahead. Last quarter Kroger posted weaker than expected numbers on both the top and bottom line, and earnings are expected to rise by just 3.8% this year and at an annual rate of 6.5% over the next five years. The low growth will prevent the stock from staging a meaningful recovery unless management is able to figure out a way to outpace estimates and prove to Wall Street that the company is able to grow despite the competitiveness of the sector and new rivals such as Amazon.com (AMZN) entering the space. The street is optimistic that Kroger will report a small earnings beat with a whisper number of $0.73 for the quarter. Whether or not a penny beat on the bottom line is enough to bring bullish sentiment back into the stock depends on whether or not the company is also able to show a positive surprise in revenues as well. Analysts do see upside in the stock with an average price target of $28.63.

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:
    $20.82
  • Previous Close:
    $20.86
  • Change:
    $-0.04 (-0.21%)
  • Open:
    $20.93
  • Volume:
    3,260,070
  • Average Volume (100 Day):
    9,209,940
  • Market Capitalization:
    $16.6 B
  • Day's Range:
    $20.70 - $21.00
  • Dividend Yield:
    3.07%
  • 52-week Range:
    $33 - $20.85
  • P-E:
    9.10
  • EPS:
    $2.29
  • Earnings Date:
    9/12/19
  • Ex Dividend Date:
    8/14/19
  • Sector:
    Consumer Defensive
  • Industry:
    Grocery Stores
  • Analyst Average Recommendation:
    Moderate Buy

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