Cincinnati, Ohio-based The Kroger Co. (KR) operates as a food retailer. The company operates numerous food stores, multi-department stores, marketplace stores, and price-impact warehouses. With a market cap of $47.1 billion, Kroger operates as one of the world's largest food retailers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Kroger fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the grocery stores industry.
KR recently touched its all-time high of $68.51 on Mar. 10 and is currently trading 3.1% below that peak. KR has surged 8.5% over the past three months, outperforming the S&P 500 Index’s ($SPX) 6.2% decline during the same time frame.
Kroger’s performance looks even more impressive over the longer term. KR soared 20.6% over the past six months and 18.4% over the past 52 weeks, outperforming SPX’s 72 bps gains over the past six months and 10.9% returns over the past year.
To confirm the bullish trend, KR has traded consistently above its 200-day moving average over the past year and above its 50-day moving average in mid-September 2024 with some fluctuations.
The recent surge in Kroger stock prices can partly be attributed to the flow of funds from discretionary and cyclical stocks to consumer staples, fueled by the increased macro uncertainties. Kroger’s stock gained 2% after the release of its mixed Q4 results on Mar. 6. The company’s adjusted sales for the quarter increased 2.6% year-over-year to $34.3 billion, which missed the Street’s expectations by a thin margin. Meanwhile, its adjusted EPS remained flat at $1.14, which exceeded the consensus estimates by 1.8%.
On a more positive note, Kroger expects its fiscal 2025 identical sales without fuel to increase 2% to 3% and its adjusted EPS to range between $4.60 to $4.80 representing a 5.1% year-over-year growth at the midpoint.
Meanwhile, Kroger has notably lagged behind its peer Sprouts Farmers Market, Inc.’s (SFM) 32% gains over the past six months and 118.5% surge over the past 52 weeks.
Among the 20 analysts covering the KR stock, the consensus rating is a “Moderate Buy.” Its mean price target of $67.55 represents a modest 1.7% premium to current price levels.
On the date of publication, Aditya Sarawgi 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.
