- Kroger (NYSE:KR) is the top pick food and staples pick of Wells Fargo in 2017 due to its favorable risk-reward profile.
- A bounce in same-store sales and some food cost easing are seen helping to lift margins at the grocery chain.
- Last week, the government's report on producer prices came in positive for the grocery sector.
- Shares of Kroger stand 17% below their 52-week high.