Kroger Company (KR) is one of the larger grocery retailers in the United States. The company also manufactures and processes food for sale by its supermarkets. The company intends to develop new food and convenience store locations and will continue to assess existing stores as to possible replacement, remodeling, enlarging, or closing.
While we have written about faltering retailers in the past--hello Wal-Mart!--for today's bulletin we provide our analysis for one of the top grocery store chains, Kroger. Bucking the trend for many, the company has been on a tear for a long time and returned @30% to investors last year.
The firm enjoys higher than average margins thanks to a focus on their own private-label brands, a popular gas station program for shoppers, and a large number of stores across the US --which operate under a variety of names. Of course, the stock has been a winner for a long time now, so the question for interested buyers is whether or not that growth can be sustained.
In the meantime, we continues our BUY recommendation on KROGER CO for 2016-01-11. Based on the information we have gathered and our resulting research, we feel that KROGER CO has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Sharpe Ratio and Company Size.
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ValuEngine Forecast |
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Target |
Expected |
|
|---|---|---|
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1-Month |
41.44 | 0.39% |
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3-Month |
41.69 | 0.99% |
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6-Month |
42.96 | 4.06% |
|
1-Year |
43.22 | 4.70% |
|
2-Year |
48.13 | 16.58% |
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3-Year |
48.69 | 17.95% |
ValuEngine Market Overview
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Summary of VE Stock Universe |
|
|
Stocks Undervalued |
70.06% |
|
Stocks Overvalued |
29.94% |
|
Stocks Undervalued by 20% |
36.4% |
|
Stocks Overvalued by 20% |
8.98% |
ValuEngine Sector Overview
|
Sector |
Change |
MTD |
YTD |
Valuation |
Last 12-MReturn |
P/E Ratio |
|
Consumer Staples |
-0.22% |
-4.65% |
-4.65% |
0.87% overvalued |
-5.76% |
22.51 |
|
Utilities |
0.33% |
-3.99% |
-3.99% |
3.76% undervalued |
-10.16% |
22.04 |
|
Aerospace |
-0.61% |
-4.24% |
-4.24% |
4.40% undervalued |
-7.41% |
19.50 |
|
Business Services |
0.01% |
-6.28% |
-6.28% |
5.64% undervalued |
-11.78% |
22.14 |
|
Computer and Technology |
-0.92% |
-6.25% |
-4.96% |
6.28% undervalued |
-8.93% |
27.21 |
|
Finance |
-0.50% |
-4.88% |
-4.88% |
6.76% undervalued |
-7.32% |
15.43 |
|
Multi-Sector Conglomerates |
-0.44% |
-6.49% |
-6.49% |
8.92% undervalued |
-17.06% |
15.89 |
|
Medical |
-2.03% |
-8.10% |
-8.10% |
11.12% undervalued |
-14.04% |
26.15 |
|
Consumer Discretionary |
-0.67% |
-5.73% |
-5.73% |
11.38% undervalued |
-10.14% |
22.65 |
|
Industrial Products |
-0.81% |
-6.23% |
-6.23% |
12.54% undervalued |
-16.24% |
16.78 |
|
Retail-Wholesale |
-0.39% |
-5.88% |
-5.88% |
12.69% undervalued |
-13.77% |
21.56 |
|
Construction |
-1.05% |
-7.39% |
-7.39% |
15.67% undervalued |
-11.11% |
17.88 |
|
Basic Materials |
-2.88% |
-7.89% |
-7.91% |
20.06% undervalued |
-28.01% |
22.65 |
|
Auto-Tires-Trucks |
-0.04% |
-10.17% |
-10.17% |
21.14% undervalued |
-17.33% |
11.52 |
|
Oils-Energy |
-4.28% |
-11.23% |
-11.23% |
25.78% undervalued |
-40.31% |
21.07 |
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Transportation |
-1.73% |
-8.91% |
-8.91% |
26.81% undervalued |
-29.91% |
13.21 |
Valuation Watch: Overvalued stocks now make up 29.24% of our stocks assigned a valuation and 8.98% of those equities are calculated to be overvalued by 20% or more. One sector is calculated to be overvalued.
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