Core Insights - Kroger Co. emphasizes the effectiveness and affordability of its Kroger® Brand household cleaning products, which are designed to meet or exceed customer expectations while being budget-friendly [2][4]. Product Offerings - The Kroger® Brand offers a variety of cleaning products suitable for spring cleaning, including glass cleaner, disinfecting bleach, paper towels, toilet bowl cleaner, disinfecting wipes, and multi-purpose cleaning vinegar [8][9]. - Specific cleaning hacks using Kroger® Brand products are suggested for various areas of the home, enhancing their usability and effectiveness [8][9]. Customer Engagement - Kroger promotes its products through in-store shopping and online options, including Kroger Pickup and Delivery, ensuring customers have access to the same low prices regardless of shopping method [9]. - The Boost by Kroger Plus membership offers potential savings of up to $1,100 per year, which includes discounts on fuel and grocery delivery, appealing to cost-conscious consumers [10]. Company Overview - Kroger Co. operates with a mission to "Feed the Human Spirit," employing nearly 420,000 associates and serving over 11 million customers daily through various retail formats and e-commerce [11].

CORNELIUS, N.C., May 05, 2025 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (Nasdaq: AMOD), a leader in AI-driven retail technology and intellectual property monetization, today announced that its wholly owned subsidiary, Alpha Modus, Corp., has reached a confidential settlement with The Kroger Co. in its ongoing patent litigation involving Alpha Modus's proprietary technologies. The lawsuit, originally filed in the United States District Court for the Eastern District of Texas, centered on the alleged inf ...

Group 1: Company Performance - Kroger's shares increased nearly 30% over the past 12 months, significantly outperforming the S&P 500, which advanced less than 10% [1] - In 2023, Kroger's identical sales growth was only 0.9%, a decline from 5.6% in 2022, with sales decreasing in the third and fourth quarters due to inflation, deflation, and competition [4] - Adjusted EPS increased by 8% in 2023, down from 15% growth in 2022, while gross margins stabilized at 22.3% in 2024 [5][6] Group 2: Sales and Margins - For 2024, Kroger's identical sales rose 1.5%, with gross margin expanding by 50 basis points to 22.3%, although adjusted EPS dipped by 6% [6] - Identical sales growth for Q4 2023 was -0.8%, but it turned positive in subsequent quarters, reaching 2.4% by Q4 2024 [7] - Digital sales growth remained strong, averaging around 11% year-over-year in 2024 [7] Group 3: Future Outlook - For 2025, Kroger anticipates identical sales growth of 2%-3% and adjusted EPS growth of 3%-7%, with analysts projecting a 6% increase in adjusted EPS [9] - A new agreement with Express Scripts is expected to bring pharmacy customers back, alleviating some previous headwinds [9] - Analysts predict a 9% rise in adjusted EPS for 2026, with Kroger's current valuation at 14 times next year's earnings, indicating it remains an attractive investment [12] Group 4: Challenges and Strategies - Unpredictable tariffs and trade wars pose potential risks to Kroger's recovery, but the company plans to diversify its supplier base and streamline supply chains [10] - The abrupt departure of CEO Rodney McMullen could impact strategic plans, with Ron Sargent serving as interim CEO [10] - Kroger's extensive network of over 2,700 stores positions it to weather economic downturns more effectively than smaller competitors [11] Group 5: Investment Considerations - Kroger's stock is viewed as attractive due to stable growth, low valuation, and a commitment to increasing dividends and buybacks [13] - The company has raised its dividend payout for 18 consecutive years, contributing to its appeal as a long-term investment [12]

Group 1 - Kroger's stock closed at $72.21, with a daily increase of +1.16%, outperforming the S&P 500's gain of 0.15% [1] - Over the past month, Kroger's shares increased by 4.75%, significantly surpassing the Retail-Wholesale sector's gain of 0.27% and the S&P 500's loss of 0.21% [1] Group 2 - The upcoming earnings report for Kroger is expected to show an EPS of $1.44, reflecting a 0.7% increase year-over-year, with revenue anticipated at $45.39 billion, indicating a 0.28% growth [2] - For the full year, analysts project earnings of $4.74 per share and revenue of $149.11 billion, representing increases of +6.04% and +1.35% respectively from the previous year [3] Group 3 - Changes in analyst estimates for Kroger are crucial as they indicate shifts in business trends, with positive revisions suggesting analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Kroger at 3 (Hold), with an unchanged EPS estimate over the last 30 days [6] Group 4 - Kroger's Forward P/E ratio stands at 15.05, which is higher than the industry's average Forward P/E of 14.63 [6] - The company has a PEG ratio of 2.13, compared to the Retail-Supermarkets industry's average PEG ratio of 1.87 [7] Group 5 - The Retail-Supermarkets industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [7][8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Kroger is positioned as a resilient stock that can thrive in various economic conditions, making it a strong investment choice in both stable and turbulent markets [2][10]. Company Performance - In Q4 2024, Kroger reported an earnings per share (EPS) of $1.14, exceeding estimates by 3 cents, while revenues decreased by 7.4% year-over-year to $34.31 billion [4]. - For the full year 2024, Kroger achieved an EPS of $3.67 and an operating profit of $3.8 billion on total revenue of $147 billion [5]. - The company increased its gross margin by 250 basis points to 22.3%, marking a 38% increase over the past seven years [5]. Market Position - Kroger operates over 2,700 stores across 35 states and Washington, D.C., under various banners, ensuring a steady demand for groceries regardless of market conditions [3]. - The company competes with major grocery operators like Walmart, Target, and Albertsons [2]. Strategic Initiatives - Kroger's private label segment, "Our Brands," generated $30 billion, accounting for 20% of total revenue in 2024, and offers products with higher margins compared to national brands [7][8]. - The company has initiated a $5 billion accelerated share repurchase program, part of a larger $7.5 billion share repurchase authorization [5]. Economic Resilience - Kroger's business model allows it to thrive during inflationary periods by expanding its private label offerings, which provide wider margins and cater to budget-conscious consumers [6][7]. - During recessionary times, Kroger benefits as consumers shift from dining out to cooking at home, leading to increased sales [6]. Stock Performance - Kroger's stock reached a new 52-week high in April 2025, demonstrating its resilience compared to benchmark indexes like the S&P 500 and Nasdaq-100 [10]. - The stock has maintained a bullish Golden Cross since February 2024, contrasting with the performance of benchmark indexes [11].

Consistent earnings growth captures the attention of top executives and analysts because it reflects a company’s profitability. However, earnings acceleration is even more effective in boosting stock price. Studies indicate that the most successful stocks have experienced an acceleration in earnings before an increase in stock price.  To that end, The Kroger Co. (KR) , Lam Research Corporation (LRCX) and Limbach Holdings, Inc. (LMB) are exhibiting strong earnings acceleration. What is Earnings Acceleration? ...

Core Viewpoint - Kroger's recent stock performance shows a decline of 1.89%, underperforming compared to the S&P 500 and other indices, but it has gained 7.88% over the past month, outperforming the Retail-Wholesale sector and the S&P 500 [1] Financial Performance - The upcoming earnings report for Kroger is expected to show an EPS of $1.44, reflecting a growth of 0.7% year-over-year, with projected net sales of $45.39 billion, an increase of 0.28% from the previous year [2] - For the full year, analysts anticipate earnings of $4.74 per share and revenue of $149.11 billion, indicating increases of 6.04% and 1.35% respectively compared to last year [3] Analyst Estimates - Recent adjustments to analyst estimates for Kroger are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Kroger as 2 (Buy), with no changes in the EPS estimate over the past month [6] Valuation Metrics - Kroger's Forward P/E ratio stands at 15.05, which is higher than the industry average of 14.55, indicating that Kroger is trading at a premium [7] - The PEG ratio for Kroger is currently 2.13, compared to the industry average of 1.88, suggesting that Kroger's valuation is higher relative to its expected earnings growth [8] Industry Context - The Retail-Supermarkets industry, to which Kroger belongs, has a Zacks Industry Rank of 46, placing it in the top 19% of over 250 industries, indicating strong performance potential [8][9]

Core Viewpoint - Kroger's stock is at an all-time high, up 16% year-to-date, contrasting with a 10% decline in the S&P 500 index, indicating strong performance and potential for further growth [1][2]. Group 1: Business Model and Market Position - Kroger is one of the largest supermarket chains in the U.S., operating nearly 2,800 stores under various brands, making it a leader in consumer staples [3]. - The company's focus on essential food products positions it well against potential economic slowdowns, as consumers prioritize food over discretionary spending [4]. Group 2: Financial Performance - Kroger reported a 2.4% year-over-year increase in identical sales for the last quarter, reversing a previous decline of 0.8% [5]. - The company anticipates identical sales growth of 2% to 3% in 2025, with earnings per share (EPS) guidance of $4.40 to $4.80, reflecting a 3% increase from 2024 at the midpoint [7]. Group 3: Growth Drivers - Kroger's private label portfolio expanded with over 900 new items last year, contributing to positive customer responses [6]. - E-commerce delivery sales increased by 18% in Q4, highlighting the effectiveness of Kroger's digital strategy [6]. - The company's advertising and data monetization efforts have become significant profit drivers, with media sales surging 17% in 2024, generating $1.4 billion in operating profit [9][11]. Group 4: Dividend and Valuation - Kroger has doubled its quarterly dividend payment over the past five years to $0.32 per share, resulting in a dividend yield of 1.9%, with expectations for further growth [12]. - The stock trades at a forward price-to-earnings (P/E) ratio of 15, significantly lower than peers like Walmart and Costco, suggesting an attractive valuation [14].

Core Viewpoint - Walmart and Kroger are positioned as reliable players in the retail industry, with Walmart being the largest global retailer and Kroger leading in traditional supermarkets in the U.S. [1][2] Walmart Overview - Walmart's business model is diversified, generating revenues from physical stores, digital platforms, advertising, and memberships, enhancing customer engagement and higher-margin revenue streams [6][7] - In Q4 of fiscal 2025, Walmart's global e-commerce sales increased by 16%, supported by strong store-fulfilled pickup and delivery services [7] - Nearly 60% of Walmart's U.S. sales come from groceries, highlighting its leadership in food retail, with Walmart International projected to reach $200 billion in gross merchandise value [8][9] - Walmart faces challenges such as cost pressures from tariffs and economic uncertainty, but its strategic adaptability and operational scale position it well for long-term success [10] Kroger Overview - Kroger focuses on customer-centric strategies, high-quality fresh food, and an expanding private-label portfolio, achieving a 2.4% increase in identical sales in Q4 of fiscal 2024 [11] - Digital sales surged by 11% in the fiscal fourth quarter, driven by initiatives like the Boost membership program and customer fulfillment centers [12] - Kroger generated $1.35 billion in operating profit from alternative profit streams in fiscal 2024, with Kroger Precision Marketing becoming a vital growth engine [13] - Despite facing high inflation and cautious consumer spending, Kroger's focus on groceries and digital presence positions it favorably [14] Earnings Estimates and Valuation - The Zacks Consensus Estimate for Walmart's fiscal 2026 EPS indicates a projected year-over-year increase of 3.6%, while Kroger's estimate points to growth of 6% for fiscal 2025 [15] - Kroger's stock trades at a forward P/E ratio of 14.96x, significantly lower than Walmart's 34.67x, indicating a more attractive valuation [16] - Kroger's stock has gained 25.5% over the past six months, outperforming Walmart's 10.9% drop, making it a compelling investment opportunity [18] Conclusion - Kroger emerges as a smarter buy for value-focused investors due to its lower valuation, stronger recent performance, and optimistic earnings growth outlook, while Walmart offers long-term stability but faces short-term challenges [19]

Core Viewpoint - Kroger may be riskier now than in many years, suggesting a shift in the grocery retail landscape that could impact investor confidence [1] Group 1: Company Analysis - Kroger's current risk profile is highlighted, indicating potential challenges that may affect its stock performance [1] - BBB Foods is presented as a more favorable grocery stock option for investors, implying a comparative analysis of growth potential and stability [1] Group 2: Market Context - The discussion reflects broader trends in the grocery industry, emphasizing the need for investors to reassess their positions in light of changing market dynamics [1]