BAML: Don't sleep on Kroger

|About: Kroger Co. (KR)|By:, SA News Editor

Keep an eye on Kroger (KR +0.6%), advise the analysts at Bank of America Merrill Lynch.

The grocery store chain has a number of growth drivers - including organic food initiatives and its FuelRewards program - which justify a premium valuation in the retail sector.

Though investors give up some dividend income with a Kroger investment in comparison to Target or Wal-Mart, the revenue growth potential makes it a solid Buy to BAML.