Key Considerations Before Investing in KR

By Emilio Sanchez • Tuesday, January 07 15:12 • Permanent Link

Large-cap Consumer Staples company Kroger has moved -2.9% so far today on a volume of 3,667,023, compared to its average of 4,861,467. In contrast, the S&P 500 index moved -1.0%.

Kroger trades -9.99% away from its average analyst target price of $65.39 per share. The 20 analysts following the stock have set target prices ranging from $55.0 to $75.0, and on average have given Kroger a rating of buy.

Anyone interested in buying KR should be aware of the facts below:

Kroger's current price is 73.2% above its Graham number of $33.98, which implies that at its current valuation it does not offer a margin of safety
Kroger has moved 31.1% over the last year, and the S&P 500 logged a change of 25.6%
Based on its trailing earnings per share of 3.78, Kroger has a trailing 12 month Price to Earnings (P/E) ratio of 15.6 while the S&P 500 average is 29.3
KR has a forward P/E ratio of 12.9 based on its forward 12 month price to earnings (EPS) of $4.58 per share
Its Price to Book (P/B) ratio is 4.77 compared to its sector average of 3.3
The Kroger Co. operates as a food and drug retailer in the United States.
Based in Cincinnati, the company has 414,000 full time employees and a market cap of $42.6 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.