Kroger (KR)

Re: Kroger (KR)

Postby winston » Wed Jul 26, 2017 7:43 pm

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The Kroger Case - Value

Simply put, this is the cheapest Kroger has been in roughly three years.

Its recent drop is caused by two main factors, the first being the announcement of the Amazon/Whole Foods merger, and the second being its recent Q1 2017 earnings report.

However, one bad quarter does not define a company, and at its current P/E of 11.02 (or 13.22-12.86 looking forward with leadership's guidance), Kroger is trading cheap compared to its rivals.

On top of this, Kroger leadership recently announced a slight increase to its dividend (yielding 2.16%) and an additional $1 billion in share buybacks.

In the case of local neighborhood grocery stores, Kroger is the one that will survive and thrive after Amazon and Whole Foods have finished changing the nature of the grocery sector. This is because Kroger is not just Kroger.

Kroger is also Harris Teeter, Pick 'n Save, Baker's, Ralph's, and many other regional grocery chains. Consumers are loyal to their neighborhood grocers, so when Kroger expands into new markets, it rarely does so under the Kroger flag.

Instead, it acquires the dominant local chain and continues to operate in the region under its name, retaining the loyalty of its customers in the process. This means Kroger operates as the #1 or #2 markets grocer in 47 of its 52 ,with the vast majority of customers traveling a mile or less to reach their nearest store.

Kroger also adopts a one-stop-shop philosophy to its retail locations, includin full-service pharmacies in most of its stores and gas stations in others.

The company aims to be the price leader on groceries in its area, targeting price conscious consumers instead of WholeFoods' premium seeking consumers.

Whereas Amazon and Whole Foods will have to start from the ground up with online ordering and grocery delivery programs - albeit with Amazon's formidable competencies in the areas as a bonus - Kroger has already been successfully implementing these services in test markets. All of this gives the company a competitive moat to help it withstand the coming Amazon/Whole Foods flood.

Kroger does have stiff competition in several regions, as the South East and Mid-Atlantic are solidly Publix and Wegmans territory, respectively. But Kroger dwarfs these companies, and as the sector consolidates against the unstoppable force of e-commerce, my thesis is that Kroger will continue to acquire and merge its way forward until it is unquestionably the dominant grocer in the country. Thus, the value-minded investor should take advantage of this small stumble in Kroger's path to pick up some shares on the cheap.

It's possible that Kroger is in for a bad year and has more pain to come before it turns around. In that case, I'd advise buying all the way down, picking up shares as they become cheaper and cheaper.

This is a long-term buy and hold play and further dips should be seen as additional buying opportunities for a best-of-class company.

Source: Seeking Alpha

https://seekingalpha.com/article/408792 ... ngcom_feed
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Re: Kroger (KR)

Postby winston » Mon Aug 21, 2017 10:31 am

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Undervalued Dividend Growth Stock of the Week

by Jason Fieber

Kroger Co. (KR) operates more than 2,700 supermarkets across 35 states (and the District of Columbia), in addition to multi-department stores, convenience stores, pharmacies, jewelry stores, fuel centers, and food processing plants.

Kroger is expecting 0-1% same-store sales growth and roughly flat YOY EPS (using the midpoint of adjusted EPS).


The final valuation is $27.83, which would indicate the stock is potentially 22% undervalued right now.


Source: Mr. Free at 33

http://dailytradealert.com/2017/08/20/u ... ck-week-2/
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Re: Kroger (KR)

Postby winston » Sat Aug 26, 2017 7:57 pm

Kroger Co (KR) Stock Is Oversold and Underappreciated

The doom and gloom talk surrounding KR stock is overrought

By Richard Band

Kroger is the largest grocery store chain in the U.S. by revenue.


Source: Profitable Investing

http://investorplace.com/2017/08/kroger ... aFTTcig-M8
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Re: Kroger (KR)

Postby winston » Fri Sep 01, 2017 10:53 am

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Kroger Company (The) (NYSE:KR)

Number of Downgrades: 15 (in the last 90 days)
Consensus Rating: Hold
Rating Score: 2.3
Ratings Breakdown: 9 Buy Ratings, 14 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $30.33 (38.7% Upside)

Kroger Company (The) logoThe Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets.

The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States.

As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States.

As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers.

As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets.

P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.

Recent Recommendations for Kroger Company (The):

Kroger Company (The) (NYSE: KR) had its "hold" rating re-affirmed by analysts at Jefferies Group LLC. They now have a $24.00 price target on the stock, down previously from $25.00. (8/31/2017)

Kroger Company (The) (NYSE: KR) was downgraded by analysts at Zacks Investment Research from a "hold" rating to a "sell" rating. (8/29/2017)

Kroger Company (The) (NYSE: KR) was given a new $34.00 price target on by analysts at Royal Bank Of Canada. They now have a "buy" rating on the stock. (8/28/2017)

Kroger Company (The) (NYSE: KR) had its "hold" rating re-affirmed by analysts at Jefferies Group LLC. (8/25/2017)

Kroger Company (The) (NYSE: KR) was downgraded by analysts at BidaskClub from a "buy" rating to a "hold" rating. (8/17/2017)

Kroger Company (The) (NYSE: KR) is now covered by analysts at Stephens. They set an "underweight" rating and a $20.00 price target on the stock. (8/11/2017)

Kroger Company (The) (NYSE: KR) was upgraded by analysts at BidaskClub from a "hold" rating to a "buy" rating. (8/9/2017)

Kroger Company (The) (NYSE: KR) was upgraded by analysts at Vetr Inc. from a "buy" rating to a "strong-buy" rating. They now have a $27.01 price target on the stock. (8/9/2017)

Kroger Company (The) (NYSE: KR) was upgraded by analysts at BidaskClub from a "sell" rating to a "hold" rating. (7/31/2017)

Kroger Company (The) (NYSE: KR) was downgraded by analysts at Vetr Inc. from a "strong-buy" rating to a "buy" rating. They now have a $26.26 price target on the stock. (7/25/2017)

Source: Market Beat
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Re: Kroger (KR)

Postby winston » Sat Sep 02, 2017 9:02 pm

Kroger Co (KR) Stock Fails These 3 Simple Tests

KR stock just isn't a long-term buy

By Matt McCall

1. Fundamentals
2. Technicals
3. Intangibles


Source: MoneyWire

http://investorplace.com/2017/09/kroger ... aqo6Mig-M8
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Re: Kroger (KR)

Postby winston » Sat Sep 02, 2017 9:04 pm

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Kroger Co (NYSE:KR) should give you a sense of absolute scale on Friday morning: the giant grocery chain does 5X as much prescription drug volume within its stores as FRED does across its more specialized footprint.

The stock has suffered as Wall Street digests what Amazon.com, Inc. (NASDAQ:AMZN) owning Whole Foods Market, Inc. (NASDAQ:WFM) really means.

I think reaction has been exaggerated and the numbers may be enough to help the bulls turn the chart around.

I’ll also be glued to the conference call for hints that management is taking the hybrid online/offline competitive threat seriously.

If there’s anything to brag about in terms of online shopping carts and home delivery, Wall Street is eager to hear it.

Source: Investor Place
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Re: Kroger (KR)

Postby winston » Sat Sep 02, 2017 9:07 pm

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Grocery Stocks: Kroger (KR)

The second grocery stock on this list is Kroger Co (NSYE:KR), and I think it will fare much better than SFM in this new era of grocery shopping.

Once again, the market also agrees here. KR stock is actually up 3% since WFM price cuts were announced, versus a 9% decline for SFM.

Why is Kroger better positioned than Sprouts? Because its portfolio of grocery stores (Kroger, Ralph’s, Dillon’s, Fry’s and many, many more) offer different stuff than Whole Foods.

You can’t buy a bag of Ruffles or Lay’s chips at Whole Foods, but they are all over Ralph’s and Dillon’s grocery stores.

In fact, there is a whole list of ingredients which Whole Foods considers “unacceptable.” From the company’s website:

Among other criteria, we draw a line when it comes to hydrogenated fats and artificial colors, flavors, preservatives and sweeteners.

So don’t expect to find your favorite Hershey’s candy bar at Whole Foods. Or Diet Coke. Or Doritos.

In this sense, Kroger actually has a product moat against WFM. It is likely that consumers who shop at KR shop there for more than just the low prices. They shop there because they still enjoy some of America’s favorite snacks, like those Doritos.

And lower prices and/or enhanced omnichannel capabilities at WFM aren’t going to convince people to stop eating Doritos.

Its also worth noting that KR stock trades at a very reasonable 6 times trailing EBITDA multiple. This is in line with most mall retailers, so I don’t think this name is due for much multiple compression even if things do go south in a hurry.

I am a buyer of KR stock here. It’s cheap, and it has the scale and product assortment to fend off competition from Amazon.

Source: Investor Place
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Re: Kroger (KR)

Postby winston » Fri Sep 22, 2017 2:47 pm

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Stocks to Buy: Kroger (KR)

by Nicholas Eckhart

Industry/Asset Class: Grocery Stores

Is there a grocery stock that has gotten pummeled more than Kroger Co (NYSE:KR) in 2017?

I highly doubt it.

The good thing about grocery stores is eating never goes out of style. Our tastes might change, our habits might change and our disposable dollars might change, but our need to eat remains.

Even in Kroger’s worst year over the past decade — fiscal 2011 when its operating margin was just 1.4% or an operating profit of $1.3 billion on $90.3 billion in revenue — it still managed to earn 51 cents per share while generating 64 cents per share in free cash flow. That’s 125.4% of earnings.

Flash forward to today, and its operating margin’s around 3% on $115.3 billion in revenue. Unfortunately, despite higher margins and sales, it has to put more money into its business to keep pace with the Amazons of the world.

However, Kroger’s management has done an excellent job building its private label Simple Truth business, which now represents $1.7 billion in annual revenue and is a growing part of its overall $16 billion natural and organic foods business.

By most financial metrics, KR stock is cheaper than it has been for some time. There’s plenty of room at the dinner table for Kroger.

Source: Investor Place
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Re: Kroger (KR)

Postby winston » Sat Mar 03, 2018 6:47 pm

Earnings Reports to Watch: Kroger (KR)

Earnings Report Date: Thursday, March 8 before market open

Kroger Co (NYSE:KR) also saw its shares plunge after the Amazon-Whole Foods deal was announced. But what’s often forgotten is that Kroger stock plunged the day before as well.

Disappointing guidance after fiscal Q1 results raised fears that margins for Kroger — and the entire grocery space — were moving downward for good. The entrance of Amazon into the industry only amplified those concerns.

I recommended my subscribers buy that dip in KR, and the stock eventually retraced all of its losses. But Kroger has weakened again – and Thursday’s report looks potentially dangerous.

The chart shows some danger, with the 20-day moving average reverting from support to resistance. Expectations have risen, with the Street looking for almost 19% EPS growth in fiscal Q4.

Meanwhile, it looks like investors have returned to being worried about the grocery industry again. The valuation of Albertsons implied by its acquisition of Rite Aid Corporation (NYSE:RAD) shows a great deal of skepticism toward the space as a whole. KR itself has pulled back over 10% from late January highs.

If Kroger doesn’t post a blowout report on Thursday morning, that pullback very well could extend. And any weakness shown by one of the industry’s giants will spill over into the rest of the sector.

Source: Investor Place
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Re: Kroger (KR)

Postby winston » Fri Jul 05, 2019 7:51 pm

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THIS OLD-SCHOOL SUPERMARKET KEEPS SLIPPING

Today's chart shows why you want to own the best companies in their fields... not the also-rans...

The greatest companies supply a product or service that few competitors can match. But that's tough for grocery stores, where competition is fierce and slim margins leave little room for error. Today's company is a grocery giant that's losing ground to other players...

Kroger (KR) is the world's largest supermarket company by revenue. It runs nearly 2,800 stores under a dozen-plus chains, including Ralphs, Harris Teeter, and Kroger itself. Kroger's massive supermarkets boast huge product selections.

But customers are drifting off to smaller discount stores... superstores with convenient grocery departments... and online marketplaces. The company's sales dipped 1% in the most recent quarter, and its identical-store sales missed analyst expectations.

KR shares are down more than 25% over the past year, falling to a new 52-week low. Kroger officials say they're turning the business around – but after a string of disappointing quarters, investors are taking their money to stronger companies...

Source: Daily Wealth
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