Deep Dive Into Kroger Stock: Analyst Perspectives (4 Ratings)

In the latest quarter, 4 analysts provided ratings for Kroger KR, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Kroger, presenting an average target of $74.75, a high estimate of $82.00, and a low estimate of $71.00. This current average reflects an increase of 6.41% from the previous average price target of $70.25.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Kroger among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Kroger. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Kroger compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Kroger's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Kroger's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Kroger analyst ratings.

Delving into Kroger's Background

Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The company also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

A Deep Dive into Kroger's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Kroger's financials over 3M reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -7.44% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Kroger's net margin is impressive, surpassing industry averages. With a net margin of 1.79%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Kroger's ROE excels beyond industry benchmarks, reaching 5.8%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Kroger's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.07% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Kroger's debt-to-equity ratio surpasses industry norms, standing at 3.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.