Kroger (KR) closed the latest trading day at $63.93, indicating a +0.2% change from the previous session's end. This change outpaced the S&P 500's 1.59% loss on the day. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 2.78%.

The supermarket chain's shares have seen an increase of 4.49% over the last month, surpassing the Retail-Wholesale sector's gain of 0.87% and the S&P 500's loss of 2.23%.

Market participants will be closely following the financial results of Kroger in its upcoming release. The company plans to announce its earnings on March 6, 2025. The company's earnings per share (EPS) are projected to be $1.09, reflecting a 18.66% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $34.62 billion, showing a 6.6% drop compared to the year-ago quarter.

Any recent changes to analyst estimates for Kroger should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. Kroger currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Kroger is currently being traded at a Forward P/E ratio of 13.53. This denotes a discount relative to the industry's average Forward P/E of 13.92.

Also, we should mention that KR has a PEG ratio of 2.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 2.53.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KR in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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