Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Ahold Delhaize derives 60% of its sales from the United States, although recent M&A has boosted Europe's share to 40%. The company reported weak Q1 2025 margins, impacted by strength in online and pharmacy sales. Even so, Ahold Delhaize confirmed its full-year outlook, indicating the company should deliver an equity free cash flow yield of around 6.8% in 2025.
Kroger (KR) closed at $67.83 in the latest trading session, marking a -1.11% move from the prior day.
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.