Grocery retailers have remained resilient amid economic challenges, with consumers prioritizing food purchases even as discretionary spending tightens. In this space, Sprouts Farmers Market Inc. SFM, with a market capitalization of around $16.1 billion, and The Kroger Co. KR, valued at roughly $45.9 billion, have captured investor attention due to solid fundamentals and ongoing strategic initiatives.
In the latest trading session, Kroger (KR) closed at $69.50, marking a +0.78% move from the previous day.
In the most recent trading session, Kroger (KR) closed at $66.34, indicating a -1.7% shift from the previous trading day.
Kroger's low valuation and strong strategy look appealing, but macro headwinds and rising costs raise the question of whether you should buy the KR stock now.
The Zacks Retail - Supermarkets industry is capitalizing on consistent consumer demand and embracing AI-driven omnichannel innovations, positioning WMT and KR for long-term growth.
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Kroger's PEG ratio of 0.83x and forward P/E of 15.4x indicate undervaluation, making it a value play despite its high share price. Strong fundamentals: 23.1% ROE, $2.8 billion free cash flow, and significant growth in digital sales and alternative profit businesses. Robust balance sheet and $7.5 billion share repurchase program enhance EPS, with manageable debt levels and potential interest expense reductions.
The latest trading day saw Kroger (KR) settling at $72.97, representing a +0.12% change from its previous close.
Kroger (KR) closed at $72.21 in the latest trading session, marking a +1.16% move from the prior day.
In robust expanding economies, investors opt for risk-on growth stocks, while inflationary, uncertain, and recessionary economic climates call for stable risk-off investments.
Kroger, Lam Research, and Limbach Holdings are displaying strong earnings acceleration.
Worried about the market's foreseeable future? If so, you're not alone.