Grocery store giant The Kroger Co. reports earnings before the opening bell on Thursday, March 8, with the stock above a “golden cross” since Jan. 11, when it closed at $28.08. The stock is trading between my monthly value level of $26.69 and my weekly risky level of $29.69. Kroger shares closed Tuesday, March 6, at $28.01, up 2% year to date and in correction territory at 10.9% below the Jan. 30 high of $31.45. Kroger traded as low as $26.63 on Feb. 9 and is 5.2% above this correction low.
Analysts expect Kroger to post earnings per share of 63 cents when it reports results on Thursday. The stock had a positive reaction to its previous earnings report on Nov. 30, which resulted in a price gap above its 200-day simple moving average. Zacks Equity Research indicates that, if the food retailer exceeds estimates this quarter, Kroger could bring its winning streak to six consecutive revenue beats and two successive quarters of positive earnings surprises. The key will be guidance on Kroger’s strategy to shift its focus to online shopping. (See also: What Alibaba-Kroger Alliance Might Mean for Amazon.)
Kroger reports earnings with a favorable P/E ratio of 16.23 and a so-so dividend yield of 1.79%. …read more
Read more here: Kroger Stocks Its Shelves in a Trading Range