The Kroger Co. (KR) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Kroger's stock has shown strong performance, increasing by 13.2% over the past month and reaching a 52-week high of $50.65, outperforming both the Zacks Retail-Wholesale sector and the Zacks Retail - Supermarkets industry [1] Performance Summary - Kroger has consistently exceeded earnings expectations, reporting an EPS of $0.95 against a consensus estimate of $0.90 in its latest earnings report [2] - For the current fiscal year, Kroger is projected to earn $4.36 per share on revenues of $150.23 billion, with a slight decline in earnings expected for the next fiscal year at $4.47 per share on $148.47 billion in revenues, reflecting year-over-year changes of -4.48% and -1.18% respectively [2] Valuation Metrics - Kroger's stock trades at 11.6X current fiscal year EPS estimates, slightly below the peer industry average of 11.8X, and at 5.3X trailing cash flow compared to the peer group's average of 5.7X [4] - The stock has a PEG ratio of 2.41, indicating it is not among the top value stocks covered [4] Zacks Rank - Kroger holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, which suggests potential for further stock price appreciation [5] - The company meets the criteria for investment selection with a Value Score of A, and Growth and Momentum Scores of B, resulting in a combined VGM Score of A [3][5]