With a market cap of $42 billion, The Kroger Co. (KR) operates as one of the largest food and drug retailers in the United States. It runs a variety of store formats, including combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses, offering groceries, general merchandise, and fuel both in-store and online.
Shares of the Cincinnati, Ohio-based company have underperformed the broader market over the past 52 weeks. KR stock has risen 12.1% over this time frame, while the broader S&P 500 Index ($SPX) has increased 19.6%. In addition, shares of Kroger are up 3.7% on a YTD basis, compared to SPX’s 16.5% gain.
However, shares of the supermarket chain have outpaced the Consumer Staples Select Sector SPDR Fund’s (XLP) 5.6% decline over the past 52 weeks and 3.7% drop on a YTD basis.
Despite reporting weaker-than-expected Q2 2025 revenue of $33.94 billion, Kroger’s shares recovered marginally on Sept. 11 because its adjusted EPS of $1.04 beat estimates. The company also raised its full-year sales forecast to 2.7% - 3.4% and lifted the lower end of its adjusted EPS outlook to $4.70 - $4.80. Confidence was further boosted by strong identical sales growth of 3.4%, driven by price cuts on over 3,500 products and higher demand for private-label items as Americans continued eating at home.
For the fiscal year ending in January 2026, analysts expect KR’s adjusted EPS to grow 7.2% year-over-year to $4.79. The company’s earnings surprise history is strong. It beat or met the consensus estimates in the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings and 10 “Holds.”
On Sept.13, Guggenheim analyst John Heinbockel maintained a “Buy” rating on Kroger and set a price target of $78.
The mean price target of $77.60 represents a 22.3% premium to KR’s current price levels. The Street-high price target of $85 suggests a nearly 34% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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