Can We Expect Upward Momentum in Kroger’s Stock Price?


Dec. 31 2018, Updated 11:53 a.m. ET

Stock performance

Kroger (KR) reported its third-quarter earnings on December 6. For the quarter ended on November 10, Kroger (KR) posted an adjusted EPS of $0.48 on revenues of $27.67 billion, outperforming analysts’ EPS expectation of $0.43 and revenue estimate of $27.66 billion. The company’s alternative revenue streams, Kroger Personal Finance and Kroger Precision Marketing, posted strong performance for the quarter. However, the company’s same-store sales growth stood at 1.6%—slightly lower than analysts’ expectation of 1.7%.

Article continues below advertisement

Kroger’s management credited the company’s early execution of the Restock Kroger initiative for its better-than-expected third-quarter earnings. The strong third-quarter earnings and 60% growth in the company’s digital sales appear to have increased investors’ confidence, which led the company’s stock price to rise to a high of $30.40 on December 14. However, since then, the company’s stock has fallen due to weakness in the broader equity market. As of December 27, the company was trading at $27.38, which represents a fall of 9.9% from the highs of December 14.

Year-to-date performance

Year-to-date, Kroger’s stock has returned -0.3%. Peers Target (TGT) and Walmart (WMT) have returned -0.8% and -7.3%, respectively. The broader comparative index, the First Trust Consumer Staples AlphaDEX ETF (FXG), which invests 24.2% of its holdings in grocery and drug store companies, has declined 5.5%.

Next in this series, we’ll look at analysts’ recommendations for Kroger and its valuation multiple.


More From Market Realist

  • what credit cards can you get without a credit check
    New Program Aims to GEt Credit Cards to People Without Credit Scores
  • Man going into a tax preparation office
    Should I File a Tax Extension Before the Tax Deadline?
  • Thai Airways plane
    Thai Airways (TAWNF) Is Risky, Best to Avoid the Penny Stock
  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.