Kroger (KR, $24.24) shares downgraded by Jefferies, on "costly" investment and lacklustre outlook on same-store sales
Kroger shares recently got downgraded by Jefferies, on tepid outlook on sales.
Jefferies downgraded the supermarket chain to hold from buy, while also cutting its price target on the company to $26 from $29.
The analyst expressed reduced confidence in the prospects of Kroger’s partnership with Ocado Group PLC . In May 2018, it was announced that Kroger had invested in a 5% stake in Ocado through a $247 million stock purchase. The deal includes automated warehouses among other technologies. But Jefferies analysts view the investment as "costly" and "risky," . Jefferies said the deal "is a poor and significant long-term capital allocation misstep when compared to micro-fulfillment."
Jefferies thinks that there is little room for any significant same-store growth in fiscal 2020. Jefferies indicated that Kroger’s management has been unable to effectively articulate a sound strategy to revive its core business, and that peers like Walmart will continue to enjoy outsized market share gains.
KR in upward trend: price may jump up because it broke its lower Bollinger Band on June 18, 2026
KR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where KR's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where KR's RSI Indicator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 06, 2026. You may want to consider a long position or call options on KR as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KR just turned positive on July 06, 2026. Looking at past instances where KR's MACD turned positive, the stock continued to rise in of 56 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KR advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where KR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for KR moved below the 200-day moving average on June 17, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for KR entered a downward trend on July 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.549) is normal, around the industry mean (4.324). P/E Ratio (34.275) is within average values for comparable stocks, (53.128). KR's Projected Growth (PEG Ratio) (0.569) is slightly lower than the industry average of (0.968). Dividend Yield (0.024) settles around the average of (0.020) among similar stocks. P/S Ratio (0.253) is also within normal values, averaging (15.668).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
an operator of supermarkets and convenience stores
Industry FoodRetail
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