Valuation and Market Position - Kroger Co. (KR) is trading at a forward 12-month price-to-earnings (P/E) ratio of 13.90, significantly below the industry average of 33.22 and the Retail-Wholesale sector average of 23.96, indicating potential for investors seeking attractive entry points [1][2] - Compared to peers like Walmart Inc. (WMT), Sprouts Farmers Market, Inc. (SFM), and Grocery Outlet Holding Corp. (GO), which have forward P/E ratios of 35.82, 30.27, and 17.36 respectively, Kroger shows a relative valuation advantage [2] Stock Performance - As of the latest closing price of $67.49, Kroger's stock is 8.3% below its 52-week high of $73.63, reached on April 22, 2025 [4] - Over the past three months, Kroger's stock has gained 3.6%, outperforming the industry's decline of 6.1% and the S&P 500 index's decline of 5% [4][6] Growth Strategies - Kroger is focusing on digital expansion, strong performance of private label brands, fresh product offerings, and partnerships to fuel growth [6] - The company has seen a digital sales increase of 11% in the fourth quarter, driven by higher household participation and traffic [12] - Investments in automation and AI-driven inventory management have improved operational efficiency and margins [13] Financial Performance - Kroger's alternative profit businesses generated $1.35 billion in operating profit in 2024, supported by a 17% increase in media revenues [14] - The company expects identical sales without fuel to increase by 2-3% in 2025, with adjusted earnings per share projected between $4.60 and $4.80 [16] Capital Allocation - Kroger ended fiscal 2024 with a net total debt-to-adjusted EBITDA ratio of 1.79, below its target of 2.3-2.5, allowing flexibility for capital investment and shareholder returns [17] - In December 2024, Kroger announced a $7.5 billion share repurchase program, including a $5 billion accelerated share repurchase [18] Challenges - The company faces stiff competition and shifting consumer behavior due to persistent inflation and elevated interest rates, which are impacting spending patterns [19] - Total company sales declined by 7.4% in the fourth quarter of fiscal 2024, with fuel operations negatively affecting results [20] - The termination of the merger with Albertsons resulted in Kroger retaining $5.8 billion of newly issued debt, leading to projected net interest expenses of $650-$675 million in 2025 [21]

Core Insights - The Leukemia & Lymphoma Society (LLS) has partnered with Kroger's Dallas Division to raise funds for The Dare to Dream Project, aimed at improving treatments for pediatric blood cancer patients and providing support for their families [1][2][4] Group 1: The Dare to Dream Project - The Dare to Dream Project is a $175 million campaign focused on funding pediatric blood cancer research, advocating for healthcare policy changes, and expanding support services for affected children and families [8] - Only 5% of cancer drugs have been approved for first-time use in children, and 80% of childhood cancer survivors face chronic health issues due to their treatments [3] Group 2: Fundraising Efforts - From May 14 to June 3, 2025, Kroger encourages customers to donate at checkout in 110 stores across North and East Texas and Louisiana to support LLS's Dare to Dream Project [2] - Funds raised will exclusively benefit the life-saving work of The Dare to Dream Project, helping to ensure better treatment outcomes for children with blood cancer [1][2] Group 3: LLS's Commitment - LLS is pioneering pediatric blood cancer research, including the establishment of the first-ever pediatric AML Data Commons and the launch of the LLS PedAL Master Clinical Trial [4] - The organization has been dedicated to improving the quality of life for blood cancer patients and their families for over 75 years [6]

Group 1: Kroger - Kroger's stock forecast indicates a 12-month price target of $67.06, with a current price of $68.91, suggesting a potential downside of 2.69% [3] - The company is expected to deliver significant capital returns to investors, including a $5 billion accelerated plan and $2.5 billion remaining on the existing authorization [3][4] - Despite a contraction in FQ4 2024 results, the organic adjusted comparable figure rose modestly, and growth is anticipated to return in 2025, supported by a reliable dividend [5][6] Group 2: Casey's General Stores - Casey's General Stores has a 12-month stock price forecast of $430.33, with a current price of $436.80, indicating a downside of 1.48% [9] - The company is growing through acquisitions and organic expansion, with revenue growth of 17% in Q3 driven by the acquisition of Fikes [9] - Casey's maintains a reliable dividend with a payout ratio of almost 15% of earnings, aiming to extend its history of annual distribution increases [11] Group 3: AutoZone - AutoZone's stock forecast shows a 12-month price target of $3,821.91, with a current price of $3,663.00, indicating an upside of 4.34% [13] - The company focuses on share buybacks instead of dividends, reducing its share count by over 3.25% year-over-year in FQ2, with $1.3 billion remaining for buybacks [14] - AutoZone is expected to continue modest single-digit growth, supported by a strong balance sheet and cash flow [15]

Industry Overview - The Zacks Retail – Supermarkets industry includes a variety of supermarket retailers offering a wide range of products, with food retail being a significant portion of their business [3] - The industry has transformed significantly, with e-commerce playing a crucial role, leading to enhanced pickup and delivery services and easy payment options [3] Key Trends - Supermarket retailers are investing heavily in omnichannel strategies to create a seamless shopping experience, integrating AI for personalized recommendations and inventory management [4] - Consistent consumer demand for grocery products and household items remains strong, making supermarkets resilient even during economic fluctuations [5] - Rising operational costs, including labor and technology investments, are squeezing profit margins, prompting supermarkets to innovate and refine their offerings [6] Performance Metrics - The Zacks Retail – Supermarkets industry has outperformed the S&P 500, with a growth of 60.7% over the past year compared to the S&P 500's 7.7% [9] - The industry currently has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 Zacks industries, indicating positive near-term prospects [7][8] Valuation - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 33.99X, significantly higher than the S&P 500's 20.43X and the sector's 22.89X [12] Company Highlights - Walmart Inc. is focusing on a diversified business model and robust omnichannel strategy, generating revenue through various channels and enhancing customer engagement [14] - The Zacks Consensus Estimate for Walmart's current fiscal year EPS is $2.60, with shares having rallied 61.1% in the past year [15] - The Kroger Co. emphasizes a customer-focused strategy and digital transformation, with initiatives boosting digital engagement and operational efficiency [18] - The Zacks Consensus Estimate for Kroger's current fiscal year EPS is $4.74, with shares increasing by 28.4% in the past year [19]

Core Insights - Kroger Co. has experienced significant stock performance, with a share price increase of nearly 36% over the past year and an almost 20% rise in 2025 alone [1] Group 1 - The company's stock is trading near an all-time high [1] - The substantial increase in share price indicates strong market performance and investor confidence [1]

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].