Is Kroger Stock A Buy Before Earnings? Raising Concerns About The Albertsons Acquisition

Nov. 21, 2022 12:53 PM ETThe Kroger Co. (KR) StockACI, KR5 Comments

Summary

  • Kroger is a rare pandemic winner that is still showing robust growth.
  • Inflation appears to be benefitting grocery stores.
  • Kroger's announced acquisition of Albertsons is huge and potentially messy.
  • The stock trades at 11x earnings, but share repurchases will be paused until leverage comes back to order.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed Growth Stocks get exclusive access to our subscriber-only portfolios. Learn More »

Retail Report Shows Consumer Spent More On Goods In June

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Kroger (NYSE:KR) has been a strong performer this year, as the grocery store company has shown strong fundamental resilience even amidst inflation and tough comparables. I have been quite bullish on the stock with the impression that

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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