Kroger
KR
is scheduled to report earnings before Thursday’s open. The stock hit a record high near $62.78/share in 2022 and is currently trading near $46/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.43/share on $45.17 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.43/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
Kroger’s price to earnings (P/E) ratio is only 11, which is below the major indices. That makes it attractive for value investors. The company’s earnings are expected to grow by +7% in 2024 compared to 2023 and by another +1% in 2025 compared to 2024. Growth investors typically want to see more growth.
A Closer Look At The Technicals
Technically, the stock has been falling since 2022 when it traded just above $62/share. The stock bottomed in the fourth quarter of 2022 near $41/share. The bulls want to see the stock rally after earnings and the bears want to see it fall and hit new lows.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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