Kroger Stock: Is KR Outperforming the Consumer Defensive Sector?

Company Overview - The Kroger Co. has a market cap of $43.9 billion and is a leading food and drug retailer in the United States, operating various store formats including combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses [1] - In addition to retail, Kroger manufactures and processes food products and sells fuel through its fuel centers, serving customers both in-store and online [2] Stock Performance - Kroger shares have pulled back 14.6% from their 52-week high of $74.90 and have declined 5.7% over the past three months, underperforming the Consumer Staples Select Sector SPDR Fund's (XLP) 2.3% decrease during the same period [3] - On a year-to-date basis, Kroger stock is up 4.6%, outperforming XLP's marginal rise, and has increased 6.8% over the past 52 weeks, compared to XLP's 4.4% decrease [4] Financial Results - Kroger reported strong Q3 2025 results, including a 2.6% increase in identical sales without fuel and a 17% growth in eCommerce sales [5] - The company raised the lower end of its full-year adjusted EPS guidance to a new range of $4.75 to $4.80, supported by an adjusted FIFO operating profit of $1.09 billion [5] - Management expects the eCommerce business to become profitable in 2026 and continues share repurchases under the remaining $2.5 billion authorization [5] Competitive Position - Rival Procter & Gamble has lagged behind Kroger, with shares decreasing 16.1% over the past 52 weeks and 12.4% on a year-to-date basis [6] - Kroger stock holds a consensus rating of "Moderate Buy" from 21 analysts, with a mean price target of $77.50, representing a premium of 17.1% to current levels [6]