With the prices of gasoline and other staples falling it looks like inflation may be on the run. But, for today, it's still a huge factor. And when inflation rears its ugly head investors look to value stocks. Grocery giant Kroger is right in that wheelhouse. And on Wednesday, Kroger stock's Relative Strength (RS) Rating climbed to 82, up 10 points from 72 the day before.
History shows that the best stocks to buy and watch, the stocks that go on to make the biggest gains, often have an 80 or better RS Rating as they launch their biggest climbs.
Kroger Stock Recently Hit Fresh All-Time High
Kroger stock popped to an all-time high 62.78 on April 8 before it too succumbed to the first half 2022 bear market. It dipped to 44.34 on July 26 then turned up. It rose above its 50-day line Tuesday and held above it Wednesday even though it dipped 1% to close at 48.55, in sync with the market. The question now is: Can Kroger return to the all-time high territory it entered in April?
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Kroger posted 22% earnings growth in its most recent report, to $1.45 per share. Revenue for the world's largest independent grocery chain rose 8% to $44.6 billion. The next quarterly numbers are expected on or around Sept. 10.
Peers In Retail Group
Kroger stock earns the No. 8 rank among its peers in the Retail-Super/Mini Markets industry group. Murphy USA and TravelCenters of America are also among the group's highest-rated stocks.
When looking for the top stocks, one factor to watch closely is relative price strength.
This unique rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the last 52 weeks matches up against the rest of the market.
