
Kroger (KR) Stock Forecast & Price Target
Kroger (KR) Analyst Ratings
Bulls say
Kroger has demonstrated strong performance with non-fuel sales showing a better-than-expected growth of 1.4%, contributing to a notable $129 million earnings beat. The company is also projecting a 3-4% growth in EBIT, which is expected to drive earnings per share (EPS) to an anticipated $5.75 by 2027. Furthermore, Kroger's core gross margin remains stable, experiencing an expansion of 33 basis points over a two-year period, indicating resilience and efficiency in its operations.
Bears say
Kroger is experiencing a concerning trend with flat-to-slightly lower core non-fuel gross margins, projected to erode by 5 basis points, indicating a potential decline in profitability. Additionally, while there was a flat reaction to the company's second-quarter earnings, this outcome was viewed as disappointing given the earnings surpassed expectations against a low benchmark. The grocery retailer also faced challenges with food volume declining by approximately 15 basis points, amidst moderate food inflation of about 1.7%, further complicating its financial outlook.
This aggregate rating is based on analysts' research of Kroger and is not a guaranteed prediction by Public.com or investment advice.
Kroger (KR) Analyst Forecast & Price Prediction
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