DailyIQ
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Sector:Consumer DefensiveAll sectors
Last updated 6 minutes ago

KR·The Kroger Co.

$.
+. (+.%)
After Hours
High
$61.28
Open
$60.43
Market Cap
37.06B
52W High
$76.58
Low
$59.79
P. Close
$60.55
P/E
35.19
52W Low
$54.15
Fwd P/E
10.92
DailyIQ Est.
$73.09
Technical Score (1D)
55
BUY
News Sentiment
67
BULLISH
Emilee De Martino, a former McDonald’s executive, has been named Chief People Officer at Kroger, signaling a renewed focus on workforce strategy and potential cost‑control initiatives, while the company’s low valuation and stable dividend keep it an attractive value play for long‑term investors. This leadership change could influence labor negotiations and employee engagement, which may affect operating costs and margin pressure in the short term. Meanwhile, Evercore ISI has lowered its price target for Kroger from $80 to $78, citing margin pressure and competitive dynamics, which may temper bullish sentiment for the next trading week. The price target cut underscores concerns that rising commodity costs and intensified competition could squeeze Kroger’s gross margins, especially as the company continues to invest in digital and omnichannel capabilities. In addition, Kroger’s $1.65 billion acquisition of Giant Eagle, completed in the past 90 days, has added significant Midwest footprint and pharmacy network, but the deal’s integration and regulatory clearance remain key watch items. If integration synergies materialize, Kroger could realize up to $200 million in annual cost savings, improving profitability over the next 1–10 trading days. Kroger is also deploying AI to enhance its retail media platform, which could boost advertising revenue and improve customer personalization, offering a second‑order benefit to its digital expansion strategy. The company’s ongoing investment in e‑commerce and delivery services, as highlighted by Zacks, positions it to capture higher‑margin sales, but will require continued cost control to offset rising operational expenses. Traders should monitor upcoming earnings guidance, the progress of Giant Eagle integration, and any updates on labor negotiations or AI‑driven revenue growth to gauge Kroger’s near‑term trajectory.
Earnings Summary
KR operates as a leading U.S. grocery retailer with a diversified store mix that includes food‑and‑drug, multi‑department, marketplace, and warehouse formats, complemented by internal manufacturing and fuel centers. The company’s broad footprint and omnichannel investments position it within the consumer‑defensive grocery sector, where stable demand and cost control are critical. In the most recent quarters, KR posted EPS of $1.04 in Q2 2025 and $1.05 in Q3 2025, both beating estimates of $0.99762 and $1.0326 respectively, after a strong $1.49 EPS in Q1 2025 that also surpassed the $1.45747 forecast. Revenue, however, fell from $45.118 B in Q1 2025 to $33.94 B in Q2 2025 and remained flat at $33.859 B in Q3 2025, indicating a downward trend in top line growth despite continued earnings strength. Historically, KR has delivered four consecutive EPS beats, with the most recent Q1 2027 EPS of $1.58 narrowly missing the $1.59316 estimate, underscoring a pattern of earnings resilience amid revenue softness. Recent news highlights the appointment of former McDonald’s executive Emilee De Martino as Chief People Officer, signaling a renewed focus on workforce strategy that could influence labor costs and margin pressure. The $1.65 billion acquisition of Giant Eagle adds a Midwest footprint and pharmacy network, with integration synergies projected at up to $200 M annually, while the deployment of AI in its retail media platform may boost advertising revenue. Investors should watch for progress on Giant Eagle integration, updates on labor negotiations, and early signs of AI‑driven revenue growth, as these factors will shape KR’s near‑term profitability trajectory.

EPS

EstBeatMiss
$0.91$1.10$1.30$1.49$1.68Q4'24Q1'25Q2'25Q3'25Q1'27Q2'27
QtrEstActual+/−
Q2'27$1.05 - -
Q1'27$1.59$1.58-0.8%
Q3'25$1.03$1.05+1.7%
Q2'25$1.00$1.04+4.2%
Q1'25$1.46$1.49+2.2%
Q4'24$1.11$1.14+2.5%

Revenue

EstBeatMiss
$31.9B$36.1B$40.3B$44.6B$48.8BQ4'24Q1'25Q2'25Q3'25Q1'27Q2'27
QtrEstActual+/−
Q2'27$35.6B - -
Q1'27$46.8B$46.1B-1.5%
Q3'25 - $33.9B -
Q2'25 - $33.9B -
Q1'25 - $45.1B -
Q4'24 - $34.3B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

KR Stock Snapshot

KR is currently trading at $60.25, giving The Kroger Co. a market cap of 37.06B and a P/E ratio of 35.2. Today's range spans $59.79–$61.28, with shares opening at $60.43 and moving down $0.30 (0.5%) from the prior close. DailyIQ's technical score sits at 55/100 (HOLD) with a news sentiment reading of 67/100.

Over the past year KR has traded between $54.15 and $76.58 - the current price is +11.3% off the 52-week low and -21.3% from the high. 35 analysts cover the stock with a Hold consensus and a mean 12-month target of $71.32 (range $58.00–$86.00), implying upside of +18.4%.

The setup for The Kroger Co. (KR) is neither bullish nor bearish - it's patient. Score: 55/100 (HOLD). Sentiment: bullish (67/100). Price: $60.25 (in the lower half of its 52-week range in $54.15–$76.58). The current P/E ratio stands at 35.2. A large-cap with 37.06B in Consumer Defensive market cap in a neutral technical phase is exactly where position-sizing decisions get made before the next trend emerges.

Portfolio construction in Consumer Defensive often uses large-cap names like KR as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 55/100 (HOLD) at $60.25 (in the lower half of its 52-week range) and bullish sentiment (67/100) frame the position as a catalyst play within the $54.15–$76.58 annual range rather than a directional bet.