Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kroger (KR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Kroger is one of 210 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. T ...

Group 1: Coca-Cola - Coca-Cola reached a record high recently, demonstrating resilience despite market pressures from tariff announcements [3][4] - The company is viewed as a safe investment, with a strong consumer base that continues to purchase its beverages even during economic downturns [4][5] - Coca-Cola has a history of paying and increasing dividends, having raised its dividend for the 63rd consecutive year, with a current yield of 2.9%, significantly above the S&P 500 average of 1.3% [6][7] Group 2: Kroger - Kroger is the largest premium supermarket chain in the U.S., with over 2,700 stores and trailing-12-month revenue of $147 billion, making it a stable investment [8][9] - The company anticipates minimal impact from tariffs due to its domestic operations in the food sector and is diversifying its supplier base to mitigate risks [9][10] - Kroger's stock has more than doubled over the past five years, and it offers a dividend yield of 1.9%, which is above the S&P 500 average, making it a reliable source of passive income [10]

Core Insights - Kroger is offering an affordable Easter meal for less than $6 per person, including ham, sides, and dessert, to help families enjoy the holiday without financial strain [1][2][3] Group 1: Product Offerings - The Easter meal includes items such as Kroger® Brand Spiral Ham, Private Selection Wisconsin 5 Cheese Blend Macaroni & Cheese, and Bakery Fresh Fruit Pies [7] - Kroger provides a variety of DIY ideas and recipes for Easter, including guides for making the perfect ham, carrot cake, and homemade candy [7] Group 2: Customer Engagement - Kroger encourages customers to explore The Fresh Lane blog for fresh recipes and DIY ideas, enhancing the holiday experience [4] - The company offers digital coupons with over $600 in savings available weekly, promoting cost-effective shopping [4][5] Group 3: Shopping Experience - Customers can shop in-store or through Kroger Pickup and Delivery, ensuring access to fresh products at low prices [5] - The Boost by Kroger Plus membership can save customers up to $1,100 per year on various services, enhancing customer loyalty [6] Group 4: Company Mission - Kroger is committed to its purpose of feeding the human spirit and aims to create ZeroHungerZeroWaste communities by 2025 [8]

Group 1 - Kroger's shares experienced a decline after reaching an all-time high of $71.93 on Friday, closing around $67 [1][4] - The stock is currently viewed as a potential investment opportunity despite the overall market downturn, as it has attracted funds from other declining stocks [1] - A 'Reversal Day' pattern was identified, indicating a potential shift in market leadership from bullish to bearish [2][4] Group 2 - If a downtrend develops, Kroger's stock may find support around $62.25, a level previously established in March [5] - Traders who sold shares at this support level are likely to place buy orders if the stock returns to this price, potentially creating renewed support [5][6]

Group 1 - The Kroger Co. is viewed positively as a 'buy' candidate, reaffirmed in December of the previous year [1] - The investment focus is on cash flow and companies that generate it, highlighting value and growth prospects [1] Group 2 - An investment service and community centered on oil and natural gas is offered, emphasizing cash flow analysis [2] - Subscribers have access to a stock model account and in-depth analyses of exploration and production firms [2]

Company Operations - Kroger operates 2,731 supermarkets across 35 states and the District of Columbia, with 2,273 having pharmacies and 1,702 featuring fuel centers[23]. - Approximately 63 million households are served annually, with over 95% of transactions linked to a Kroger loyalty card[31]. - As of February 1, 2025, Kroger owns 33 food production plants, contributing to the production of approximately 31% of its private label items[30]. - Kroger has implemented over 200 business continuity plans to manage risks related to natural disasters and supply chain disruptions[44]. - The company is investing in technology and processes to fulfill customer orders conveniently and cost-effectively, which is essential for maintaining competitiveness in the evolving retail landscape[54]. - The company is committed to developing a relevant digital experience for customers, which is crucial for the success of its digital business[55]. - The company plans to invest in major store projects to increase both in-store and online sales, aiming to serve more households[122]. - Total supermarket square footage increased to 182 million in 2024 from 180 million in 2023, with 16 new stores opened[215]. Financial Performance - Total sales for 2024 were $147.123 billion, a decrease of 1.9% compared to $150.039 billion in 2023[127]. - Operating profit reached $3.849 billion, representing a 24.3% increase from $3.096 billion in 2023[127]. - Net earnings attributable to The Kroger Co. were $2.665 billion, a 23.2% increase compared to $2.164 billion in 2023[127]. - Digital sales exceeded $13.0 billion in annual sales, with Delivery solutions growing by 18% in 2024[132]. - Share repurchases totaled $4.194 billion, including 68.4 million shares at an average price of $61.31 per share[129]. - Dividends paid increased by 10.9% to $883 million, with dividends per common share rising to $1.22[127]. - The company reported a cumulative total shareholder return of 255.56% from 2019 to 2024, outperforming both the S&P 500 Index and its peer group[107]. - The effective income tax rate decreased to 20.0% in 2024 from 23.5% in 2023, influenced by tax benefits from the sale of Kroger Specialty Pharmacy[179]. Employee and Labor Relations - Kroger invested approximately $192 million in associate training and development in 2024, with a focus on onboarding and leadership programs[35]. - The average hourly wage for Kroger associates exceeded $19 in 2024, reflecting a 38% increase over the past seven years, totaling over $2.7 billion in wage investments[38]. - Nearly two-thirds of associates are covered by collective bargaining agreements, with approximately 350 agreements in place, which could impact financial condition if negotiations fail[57]. - The company is committed to fair wages and benefits, but changes in wage regulations could affect future financial performance[58]. - Recent key executive changes may pose challenges in recruitment and retention of qualified associates, potentially impacting business operations[59]. Digital and Marketing Strategy - Kroger's seamless digital ecosystem includes Pickup and Delivery services available at 2,412 supermarkets, enhancing customer convenience[28]. - Kroger's retail media business, Kroger Precision Marketing, is a key driver of digital profitability and alternative profit streams[31]. - The company aims to grow profits by increasing loyal households, customer traffic, and digitally engaged customers, leveraging data insights from its retail grocery business[53]. - Kroger's digital sales are expected to grow at a double-digit rate, outpacing other food-at-home sales over time[122]. Risks and Challenges - The competitive environment is characterized by intense competition from various retail formats, including online retailers and grocery delivery services, which increases the need for the company to adapt quickly to customer preferences[52]. - The company faces risks related to its ability to compete effectively and meet customer expectations, which could adversely affect its financial condition and results of operations[51]. - The company anticipates significant costs associated with replacing refrigerant infrastructure due to climate-related legislation[43]. - Rapid developments in AI technology may increase competitive and security risks, necessitating further investment in innovation and compliance[61]. - The company faces potential liabilities from payment processing systems, including compliance with PCI DSS standards, which could affect financial results if breached[69]. - Indebtedness may limit the ability to secure additional financing and increase vulnerability to economic downturns[70]. - Compliance with evolving laws and regulations could increase operational costs and affect financial performance[71]. - Future regulatory changes regarding health and safety standards could significantly increase business costs and operational requirements[74]. - Kroger estimates exposure to ongoing legal proceedings, including opioid litigation, which could result in substantial losses[75]. Shareholder Returns and Investments - In 2024, Kroger paid quarterly cash dividends of $0.29 and $0.32 per share, with an expectation to continue increasing dividends over time based on earnings[103]. - Kroger's total shareholder return is projected to be within the target range of 8% to 11% over time[121]. - A $7.5 billion share repurchase program was approved on December 11, 2024, replacing the previous September 2022 program[218]. Pension and Financial Liabilities - The company anticipates an increase in contributions to multi-employer pension plans, potentially affecting financial condition and cash flows[77]. - Kroger bears investment risk for two multi-employer pension plans and may need to make additional contributions if investment results are unfavorable[78]. - Cash contributions to multi-employer pension plans were $398 million in 2024, down from $635 million in 2023 and $620 million in 2022[199]. - The estimated share of underfunding of multi-employer pension plans was approximately $1.9 billion as of December 31, 2024, a decrease of $630 million from $2.5 billion in 2023[202].

Core Insights - Kroger is set to launch over 900 new items in 2025, focusing on its Our Brands products to enhance quality and affordability for customers [1][10] - The company emphasizes product innovation based on customer preferences, aiming to introduce trendy items that cater to various budgets [3][10] Product Highlights - Introduction of six new Private Selection® salad kits featuring fresh ingredients and diverse flavors [4][5] - Launch of Kroger® Brand Kettle Style Tortilla Chips in Traditional and Hatch Chile varieties, designed for enhanced texture and flavor [6] - New Kroger® Brand Restaurant Style Italian Dressing made with authentic Italian ingredients for versatile use [7] - Simple Truth Organic® Instant Mushroom Tea available in Black and Chai blends, promoting wellness through adaptogenic properties [8] - New Private Selection® Muffins offered in four gourmet flavors, catering to different taste preferences [9] Shopping Experience - Customers can access new products and savings through Kroger's digital platforms, with over $600 in weekly savings available [10] - Kroger provides a seamless shopping experience through in-store and online options, including Pickup and Delivery services [11]

Core Insights - The report titled "Enterprise Tech Ecosystem Series: The Kroger Co. - 2025" provides an overview of Kroger's technology activities, including digital transformation strategies, innovation programs, technology initiatives, investments, and acquisitions [1][4]. Company Overview - Kroger operates 2,722 supermarkets across the US as of February 3, 2024, with 2,257 having pharmacy outlets and 1,655 featuring fuel centers [2]. - The company utilizes various store formats, including multi-department stores, combination food and drug stores, price impact warehouses, and marketplace stores [3]. Technology Activities - The report covers insights into Kroger's digital transformation strategies and innovation programs [6]. - It provides an overview of technology initiatives, including partnerships, product launches, investments, and acquisitions [6]. - Detailed insights on each technology initiative are included, focusing on technology themes, objectives, and benefits [6]. Financial Insights - The report includes details on estimated ICT budgets and major ICT contracts [6]. Key Partnerships and Collaborations - The report highlights key partnerships and collaborations with major technology companies such as Google Cloud, Nvidia, Microsoft, and IBM [6].

Core Viewpoint - The legal dispute between Kroger and Albertsons is intensifying, with Kroger countersuing Albertsons and denying responsibility for the failed $25 billion merger [1][2]. Group 1: Kroger's Position - Kroger asserts that it is actively seeking regulatory approval for the merger and claims that Albertsons is engaging in a misguided campaign that undermines Kroger's efforts [2]. - Kroger contends that due to Albertsons' alleged misconduct, it is not entitled to the $600 million termination fee and other damages [2]. - Kroger emphasizes its commitment to generating value for stakeholders through investments that lower prices and increase wages [4]. Group 2: Albertsons' Response - Albertsons describes Kroger's claims as weak and a distraction from its own leadership issues and failures to meet contractual obligations [5]. - Albertsons maintains that it has been committed to the merger's success and has filed a lawsuit against Kroger for breach of contract regarding regulatory approval efforts [6]. Group 3: Legal Proceedings and Regulatory Concerns - A federal judge blocked the merger, agreeing with the FTC that it would harm competition in the grocery sector [5][7]. - The judge noted that the proposed plan to divest over 500 stores did not adequately address competition concerns [7]. - Both companies argued that the divestiture plan would maintain consumer access to grocery stores and pledged significant investments post-merger [9].