Kroger Stock Buy Hold or Sell Recommendation

KR
 Stock
  

USD 45.00  0.45  0.99%   

Allowing for the 90-day total investment horizon and your below-average risk tolerance, our recommendation regarding Kroger Company is 'Cautious Hold'. Macroaxis provides Kroger buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Kroger positions. The advice algorithm takes into account all of Kroger's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Kroger's buy-and-hold perspective. Please see Kroger Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Kroger and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Kroger Company.

Execute Kroger Buy or Sell Advice

The Kroger recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Kroger Company. Macroaxis does not own or have any residual interests in Kroger Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Kroger's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell KrogerBuy Kroger
Cautious Hold

Volatility

Details

Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Kroger Company has a Mean Deviation of 1.14, Standard Deviation of 1.65 and Variance of 2.73
Kroger Company trade recommendations module can be used to check and cross-verify current advice provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Kroger Company is not overpriced, please verify all Kroger Company fundamentals, including its book value per share, working capital, and the relationship between the cash and equivalents and number of employees . Given that Kroger Company has a price to earning of 13.90 X, we recommend you to check Kroger market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Kroger Trading Alerts and Improvement Suggestions

Kroger Company generated a negative expected return over the last 90 days
The company reports 20.75 B of total liabilities with total debt to equity ratio (D/E) of 2.21, which may imply that the company relies heavily on debt financing. Kroger Company has a current ratio of 0.74, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Kroger until it has trouble settling it off, either with new capital or with free cash flow. So, Kroger's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Kroger Company sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Kroger to invest in growth at high rates of return. When we think about Kroger's use of debt, we should always consider it together with cash and equity.
Over 83.0% of Kroger shares are owned by institutional investors
On 1st of September 2022 Kroger paid $ 0.26 per share dividend to its current shareholders
Latest headline from www.prnewswire.com: Payment of 613 shares by Valerie Jabbar of Kroger subject to Rule 16b-3

Kroger current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Kroger analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Kroger analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price54.88
Target Median Price54.00
Target High Price75.00
Recommendation Mean2.80
Number Of Analyst Opinions23
Target Low Price41.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Kroger Returns Distribution Density

The distribution of Kroger's historical returns is an attempt to chart the uncertainty of Kroger's future price movements. The chart of the probability distribution of Kroger stock daily returns describes the distribution of returns around its average expected value. We use Kroger Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Kroger returns is essential to provide solid investment advice for Kroger.
Mean Return-0.09Value At Risk-2.31
Potential Upside2.68Standard Deviation1.65
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Kroger historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Kroger Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Kroger or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Kroger's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Kroger stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.07
β
Beta against DOW0.53
σ
Overall volatility
1.68
Ir
Information ratio -0.02

Kroger Volatility Alert

Kroger Company exhibits very low volatility with skewness of 1.46 and kurtosis of 5.64. However, we advise investors to further study Kroger Company technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kroger's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kroger's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Kroger Implied Volatility

Kroger's implied volatility exposes the market's sentiment of Kroger Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Kroger's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Kroger stock will not fluctuate a lot when Kroger's options are near their expiration.

Kroger Fundamentals Vs Peers

Comparing Kroger's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Kroger's direct or indirect competition across all of the common fundamentals between Kroger and the related equities. This way, we can detect undervalued stocks with similar characteristics as Kroger or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Kroger's fundamental indicators could also be used in its relative valuation, which is a method of valuing Kroger by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Kroger to competition
FundamentalsKrogerPeer Average
Return On Equity23.51 %(0.31) %
Return On Asset5.53 %(0.14) %
Profit Margin1.54 %(1.27) %
Operating Margin5.13 %(5.51) %
Current Valuation52.58 B16.62 B
Shares Outstanding735.26 M571.82 M
Shares Owned by Insiders0.65 %10.09 %
Shares Owned by Institutions82.71 %39.21 %
Number of Shares Shorted23.16 M4.71 M
Price to Earning13.90 X28.72 X
Price to Book3.60 X9.51 X
Price to Sales0.24 X11.42 X
Revenue141.19 B9.43 B
Gross Profit31.33 B27.38 B
EBITDA7.24 B3.9 B
Net Income2.16 B570.98 M
Cash and Equivalents1.38 B2.7 B
Cash per Share1.93 X5.01 X
Total Debt20.75 B5.32 B
Debt to Equity2.21 %48.70 %
Current Ratio0.76 X2.16 X
Book Value Per Share12.63 X1.93 K
Cash Flow from Operations5.04 B971.22 M
Short Ratio3.61 X4.00 X
Earnings Per Share3.27 X3.12 X
Price to Earnings To Growth1.71 X4.89 X
Number of Employees500 K18.84 K
Beta0.53-0.15
Market Capitalization33.42 B19.03 B
Total Asset33.9 B29.47 B
Retained Earnings17.55 B9.33 B
Working Capital(3.08 B)1.48 B
Current Asset9.89 B9.34 B
   Payment of 611 shares by Valerie Jabbar of Kroger subject to Rule 16b-3 [view details]

About Kroger Buy or Sell Advice

When is the right time to buy or sell Kroger Company? Buying financial instruments such as Kroger Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Please see Kroger Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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Is Kroger's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kroger. If investors know Kroger will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kroger listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Kroger Company is measured differently than its book value, which is the value of Kroger that is recorded on the company's balance sheet. Investors also form their own opinion of Kroger's value that differs from its market value or its book value, called intrinsic value, which is Kroger's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kroger's market value can be influenced by many factors that don't directly affect Kroger's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kroger's value and its price as these two are different measures arrived at by different means. Investors typically determine Kroger value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kroger's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.