KR Stock Analysis — Kroger
Sector: Retail
AI Verdict
Kroger trades cheap for the growth you're getting, but the market is skeptical that the 231.5% earnings jump will actually show up — if its scale advantage delivers, this is a bargain, but it's all about execution.
Competitive Moat
Kroger operates one of the largest supermarket chains in the U.S. with a dominant footprint in grocery and strong private label brands that drive customer loyalty. Its scale allows for efficient supply chain management and bargaining power with suppliers, making it tough for smaller competitors to match prices or selection.
Summary
Kroger is trading at just 12.7x next year's earnings after a year of weak returns and a huge projected earnings rebound.
Where It Stands
Shares are down -5.97% over the past year, the RSI is at 35.6 (cooling, near oversold), and the forward P/E of 12.7x is below the consumer staples sector median of 20x.
Key Metrics
- RSI: 35.6 — Near Oversold
- Trailing P/E: 42.2x
- Forward P/E: 12.7x
- PEG Ratio: 0.18
- Earnings Growth: +2.3%
- Revenue Growth: +0.0%
- Market Cap: $40.0B
- Dividend Yield: 0.02%
- 1-Year Return: -5.97%
- 52-Week High: $76.58
- 52-Week Low: $58.60
Analyst Consensus
19 Buy · 14 Hold · 0 Sell (33 analysts)
Bull Case
With forward EPS expected to jump 231.5%, you're paying a low 12.7x multiple for a dramatic earnings recovery.
Bear Case
If the P/E reverts back to the sector median of 20x without the forecasted earnings surge, the stock could stagnate or even fall further from here.
Catalyst to Watch
Watch for next quarter's earnings report to confirm whether the massive EPS rebound is actually materializing.