Kroger (KR, $38.91) beats Q1 expectations; boosts full-year guidance
Supermarket company Kroger posted adjusted earnings of $1.19 per share for the first quarter, that exceeded the Zacks Consensus Estimate of 99 cents. However, the figure is lower than the year-ago quarter’s $1.22.
Sales fell -0.6% year-over-year to $41,298 million, but surpassed the Zacks Consensus Estimate of $39,222 million. Excluding fuel, sales were -4% lower than the year-ago period.
Kroger’s digital sales rose +16%; without fuel, they fell -4.1%.
Gross margin shrunk -170 basis points to 22.6%. FIFO gross margin, excluding fuel, contracted -65 basis points from the year-ago period.
For 2021, Kroger is expecting adjusted profit per share between $2.95 and $3.10, compared with its prior expectation of $2.75 to $2.95. It projects 2021 adjusted same-store sales to fall up to -4%, vs. prior forecast of up to -5% decline.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KR's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for KR turned positive on October 08, 2026. Looking at past instances where KR's MACD turned positive, the stock continued to rise in 38 of 58 cases over the following month. The odds of a continued upward trend are 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 07, 2026. You may want to consider a long position or call options on KR as a result. In 64 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
KR moved above its 50-day moving average on September 24, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where KR advanced for three days, in 170 of 307 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
The Aroon Indicator entered an Uptrend today. In 119 of 211 cases where KR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Bearish Trend Analysis
The 10-day RSI Indicator for KR moved out of overbought territory on September 16, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 21 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
KR broke above its upper Bollinger Band on October 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 8 (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 16 (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 (6.035) is normal, around the industry mean (3.407). P/E Ratio (32.265) is within average values for comparable stocks, (55.345). Projected Growth (PEG Ratio) (0.585) is also within normal values, averaging (0.979). Dividend Yield (0.024) settles around the average of (0.014) among similar stocks. P/S Ratio (0.258) is also within normal values, averaging (10.259).
The Tickeron Profit vs. Risk Rating rating for this company is 37 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. KR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (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 SMR rating for this company is 58 (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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