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Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners... Show more

Industry: #Food Retail
KR
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A.I.Advisor
Sep 09, 2026

Kroger (KR) Stock Analysis: Digital Profitability and Cost Discipline Anchor the Turnaround

Key Takeaways

  • Kroger shares have been roughly flat over the trailing 30 days, edging up about 0.3% from the mid-$56 level, well below any threshold that would signal a major short-term price move.
  • First-quarter fiscal 2026 results showed adjusted EPS of $1.58, narrowly missing consensus, while revenue of $46.12 billion beat estimates on 2.2% year-over-year growth.
  • A key milestone was reached when Kroger's e-commerce business, including media, turned profitable for the first time, supported by 19% adjusted e-commerce sales growth.
  • Management reaffirmed full-year guidance under new CEO Greg Foran, with adjusted EPS of $5.10 to $5.30 and identical sales growth (excluding fuel) of 1% to 2%.
  • The company raised its quarterly dividend to $0.39 per share, and analysts maintain a consensus "Moderate Buy" rating with an average price target near $72.

Current Market Snapshot

Kroger stock has traded in a relatively narrow band over the past month, holding near the $56 to $59 range. The latest available price sits around $56.63, essentially unchanged from the closing level of roughly $56.48 recorded 30 calendar days earlier, translating to a modest increase of about 0.3% over the period. This sideways action reflects a market that is weighing a resilient grocery franchise against softer identical-sales trends, margin pressure, and a challenging consumer backdrop.

Broader sentiment toward Kroger remains cautious but not bearish. The shares carry a beta near 0.4, underscoring their defensive, lower-volatility profile relative to the broader market. With a 50-day moving average near $57.8 and a 200-day moving average around $63.9, the stock is trading below its longer-term trend, while its 52-week range of approximately $54.15 to $76.58 illustrates how far sentiment has cooled from prior highs.

Kroger (KR) Business Overview and Competitive Position

The Kroger Co. is one of the largest grocery retailers in the United States, serving millions of customers daily through a portfolio of banner names and a growing digital ecosystem. The company operates supermarkets, multi-department stores, and convenience formats, complemented by a pharmacy business, a fuel network, and the Kroger Precision Marketing retail media platform.

Kroger's competitive strengths include its scale, private-label "Our Brands" portfolio, customer loyalty and data capabilities, and an increasingly integrated omnichannel model. Management has emphasized that omnichannel shoppers spend significantly more than in-store-only customers, reinforcing the value of its hybrid fulfillment approach. In the competitive grocery landscape, Kroger contends with large rivals such as Walmart (WMT), Costco (COST), Amazon (AMZN), and Albertsons (ACI), as well as regional and discount grocers.

Recent Developments Driving KR

Kroger's most significant recent catalyst was its first-quarter fiscal 2026 earnings report, released in June. The company posted adjusted earnings of $1.58 per share, narrowly below the consensus estimate, while revenue of $46.12 billion exceeded expectations and rose 2.2% year over year. Identical sales excluding fuel increased 1.0%, a deceleration from the prior year's pace that management attributed in part to cautious consumer behavior and softer food inflation.

The standout development was digital profitability. Adjusted e-commerce sales grew 19%, led by delivery, and Kroger Precision Marketing profit rose more than 20%. Management confirmed that the e-commerce business, including media, turned profitable for the first time, marking an inflection point for a segment that has historically pressured industry economics.

At the same time, margins faced headwinds. Gross margin narrowed to 22.7% from 23.0% in the year-ago quarter, reflecting higher transportation costs, egg deflation, and planned price investments. New CEO Greg Foran framed the strategy around the "5 Fs" of fresh, fast, for you, friendly, and affordable, signaling a sharper focus on cost discipline and store execution, with an investor update planned for October 20. Kroger also raised its quarterly dividend to $0.39 per share, a roughly 2.7% annualized yield at recent prices.

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2026 Outlook and What Investors Should Watch

Looking ahead, the next major catalyst for Kroger is its fiscal second-quarter 2026 earnings report, scheduled for September 11. Analysts have flagged a challenging grocery backdrop, with Oppenheimer projecting flat identical sales excluding fuel versus a Street estimate near 1.1% growth, and flagging potential headwinds from pharmacy trends, a weaker consumer, and elevated diesel costs. Investors will be watching whether management updates its full-year outlook and provides more detail on its turnaround plan ahead of the October investor event.

Key themes to monitor through 2026 include the pace of identical-sales recovery, continued progress in e-commerce and retail media profitability, the success of pricing investments funded by cost savings, and the impact of inflation, fuel costs, and consumer spending patterns. Kroger's reiterated full-year guidance for adjusted EPS of $5.10 to $5.30 and identical sales growth of 1% to 2% provides a framework, but execution on cost discipline and store-level improvements under the new leadership will likely determine whether the stock can regain momentum.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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A.I.Advisor
a Summary for KR with price predictions
Sep 21, 2026

Momentum Indicator for KR turns positive, indicating new upward trend

KR saw its Momentum Indicator move above the 0 level on September 11, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 98 similar instances where the indicator turned positive. In 62 of the 98 cases, the stock moved higher in the following days. The odds of a move higher are at 63%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for KR just turned positive on September 11, 2026. Looking at past instances where KR's MACD turned positive, the stock continued to rise in 33 of 57 cases over the following month. The odds of a continued upward trend are 58%.

KR moved above its 50-day moving average on September 11, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for KR crossed bullishly above the 50-day moving average on August 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 6 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 46%.

Following a +6.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where KR advanced for three days, in 167 of 306 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 111 of 213 cases where KR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.

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 18 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 55%.

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 71 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 49%.

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 September 14, 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 7 (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 (6.068) is normal, around the industry mean (3.551). P/E Ratio (32.432) is within average values for comparable stocks, (55.837). Projected Growth (PEG Ratio) (0.588) is also within normal values, averaging (1.008). 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 Price Growth Rating for this company is 51 (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 Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.

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.

A.I.Advisor
published Dividends

KR paid dividends on September 01, 2026

Kroger Co (The) KR Stock Dividends
А dividend of $0.39 per share was paid with a record date of September 01, 2026, and an ex-dividend date of August 14, 2026. Read more...
A.I.Advisor
published Highlights

Notable companies

The most notable companies in this group are Kroger Co (The) (NYSE:KR).

Industry description

The food retail industry includes companies that sell food, beverage and household products. Items sold include grocery, gourmet food, fresh produce, and frozen food. Kroger Co., George Weston Ltd., Grocery Outlet Holding Corp., and Sprouts Farmers Markets, Inc. are examples of major food retailers. While e-commerce companies like Amazon have increasingly been ramping-up offerings in the food retail space, several traditional players have also been expanding their online presence to stand their ground against rising competition.

Market Cap

The average market capitalization across the Food Retail Industry is 4.28B. The market cap for tickers in the group ranges from 80 to 51.04B. LBLCF holds the highest valuation in this group at 51.04B. The lowest valued company is MFLTY at 80.

High and low price notable news

The average weekly price growth across all stocks in the Food Retail Industry was -3%. For the same Industry, the average monthly price growth was -5%, and the average quarterly price growth was -5%. NGVC experienced the highest price growth at 5%, while VHUB experienced the biggest fall at -28%.

Volume

The average weekly volume growth across all stocks in the Food Retail Industry was -14%. For the same stocks of the Industry, the average monthly volume growth was 12% and the average quarterly volume growth was -23%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 46
P/E Growth Rating: 37
Price Growth Rating: 59
SMR Rating: 73
Profit Risk Rating: 78
Seasonality Score: -47 (-100 ... +100)
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published General Information

General Information

an operator of supermarkets and convenience stores

Industry FoodRetail

Profile
Details
Industry
Food Retail
Address
1014 Vine Street
Phone
+1 513 762-4000
Employees
403000
Web
https://www.thekrogerco.com