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Company Profile

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets.

The Kroger Co (KR) is scheduled to report its first quarter earnings results on June 14, 2012, before market open.

Technical Overview

(click to enlarge)

Kroger has a market cap of $12.29 billion and it is currently trading around $21.91 with a 52 week range of $21.14 to $25.85. The stock has -9.54% price performance for the year 2012. The following table provides the key financial ratios for Kroger:

Key Ratio

Value

Current Ratio

0.8

PEG

2.23

P/E

22.82

Forward P/E

8.76

Profit Margin

0.66%

Return On Assets (ROA)

2.54%

Return On Equity (ROE)

12.89%

Recent News

  • On May 24, 2012, Kroger announced that customers can now earn and redeem their fuel points to save up to $2.00 off per gallon at The Kroger Co.'s Family of Stores Fuel Centers.
  • On May 15, 2012, Kroger received the prestigious Black Pearl award for food safety.
  • On March 22, 2012, Kroger announced that they will no longer purchase ground beef containing lean finely textured beef.
  • On March 19, 2012, Kroger announced the promotion of Tim Brown as president of the company's Delta division.

Here's a list of recent changes to analyst ratings:

  • On May 14, 2012, Kroger was downgraded to Neutral from Buy at Cleveland Research.
  • On May 8, 2012 Thomas White/Global Capital downgraded Kroger from UNFAVORABLE to MOST UNFAVORABLE.
  • On May 7, 2012 Ned Davis Research downgraded Kroger from BUY to NEUTRAL.
  • On April 30, 2012 Ned Davis Research upgraded Kroger from NEUTRAL to BUY.
  • On April 27, 2012 Ford Equity Research upgraded Kroger from FAVORABLE to BUY.
  • On April 20, 2012 Ford Equity Research downgraded Kroger from MOST FAVORABLE to FAVORABLE.
  • On March 23, 2012 Market Edge upgraded Kroger from SELL to BUY.
  • On March 19, 2012 Thomson Reuters/Verus downgraded Kroger from HOLD to SELL.
  • On March 13, 2012 UBS downgraded Kroger from BUY to NEUTRAL and set the Price target as $25.
  • On March 7, 2012 Zacks Investment Research, Inc. upgraded Kroger from HOLD to BUY.

Analyst Guidance and Earnings History

The first quarter revenues are expected to be $29.14 billion when compared to $27.46 billion for the same quarter last year. Earnings per share for the first quarter are expected to be 73 cents a share, up from 70 cents a share in the year-ago period.

The average price target from analyst for Kroger is $26.35 with average rating is OVERWEIGHT

Out of the last 4 quarters, Kroger has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Source: Earnings Preview: The Kroger Co