Kroger was one of the biggest stories out of all grocers for 2014, as its share price grew about 65% over the course of the year. The store now touts its own natural and organic foods with less expensive prices than competitor Whole Foods Market. More recently, Kroger led health and personal care stores with a score of 81 on the American Customer Satisfaction Index.
For the entire fourth quarter shares have posted solid growth resulting in the 50-day moving average (MA) underscoring the stock for the quarter. The 50-day MA currently reads $68.36. However, shares have only fallen off recently as earnings have drawn closer, ultimately testing the 50-day MA. The 200-day moving average is immaterial at $56.16.
A few analysts weighed in on the giant grocer in the two weeks prior to earnings:
- Oppenheimer has a Buy rating and set its price target $80, implying an upside of 15% compared to current prices.
- Vetr upgraded Kroger to a Sell rating from a Strong Sell with a price target of $57, implying a downside of 18%.
- Jefferies reiterated a Hold rating and slightly raised its price target to $67 up from $66, implying a slight downside of 5%
Kroger has a price-to-earnings (P/E) ratio of 20, against its 2015 earnings estimates. It is also worth noting that Kroger is considered a key defensive stock.
Shares of Kroger were down late Wednesday 0.7% at $69.50. The stock has a consensus analyst price target of $70.4 and a 52-week trading range of $42.28 to $73.60.
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