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Kroger (KR) Gains But Lags Market: What You Should Know

Kroger (KR) closed at $44.63 in the latest trading session, marking a +0.95% move from the prior day. The stock lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 6.63%.

Heading into today, shares of the supermarket chain had lost 0.83% over the past month, lagging the Retail-Wholesale sector's gain of 10.03% and the S&P 500's gain of 4.75% in that time.

Wall Street will be looking for positivity from Kroger as it approaches its next earnings report date. On that day, Kroger is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 2.2%. Meanwhile, our latest consensus estimate is calling for revenue of $34.81 billion, up 5.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.13 per share and revenue of $148.24 billion. These totals would mark changes of +12.23% and +7.51%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Kroger is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Kroger is holding a Forward P/E ratio of 10.69. This valuation marks a discount compared to its industry's average Forward P/E of 11.9.

Meanwhile, KR's PEG ratio is currently 1.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

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