Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Kroger (KR) have what it takes?
Kroger Co. (KR) is rated a Buy, supported by strong fundamentals, growth initiatives, and long-term tailwinds despite near-term headwinds and management changes. KR's robust free cash flow, cost-cutting measures, and significant private label sales underpin its resilience and strength in a highly competitive grocery market. Risks include intensifying competition from discount grocers, ongoing legal disputes over the failed Albertsons acquisition, and leadership transitions in an uncertain macro environment.
The latest trading day saw Kroger (KR) settling at $65.9, representing a -2.24% change from its previous close.
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In the closing of the recent trading day, Kroger (KR) stood at $66.71, denoting a +1.12% move from the preceding trading day.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Kroger (KR) have what it takes?
Kroger (KR) closed the most recent trading day at $64.91, moving +2.33% from the previous trading session.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Kroger (KR) have what it takes?
Kroger remains undervalued despite strong quarterly results, robust online sales growth, and improving margins, warranting a Buy rating with an $83 target price. KR's aggressive $5 billion share buyback program and increased dividends signal management's confidence and support for shareholder returns. The company continues to outperform sector averages, with digital sales up 16% YoY and efficient cost control driving EPS and margin growth.
The Zacks Retail - Supermarkets industry benefits from robust omnichannel strategies and resilient consumer demand, with WMT and KR well-positioned to capitalize on digital investments and operational efficiencies.