Should Value Investors Buy The Kroger Co. (KR) Stock?

Core Viewpoint - The Kroger Co. (KR) is identified as a strong value investment opportunity, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is likely undervalued compared to its peers [2][4]. Valuation Metrics - KR has a P/E ratio of 12.72, significantly lower than the industry average of 23.74, suggesting it is undervalued [2]. - The Forward P/E for KR has fluctuated between 9.49 and 12.75 over the past year, with a median of 10.46 [2]. - The PEG ratio for KR stands at 2.63, compared to the industry average of 3.73, indicating a favorable valuation relative to expected earnings growth [2]. - KR's PEG has ranged from 1.65 to 2.89 in the last 12 months, with a median of 2.08 [2]. - The P/B ratio for KR is 3.52, which is lower than the industry average of 5.58, further supporting the notion of undervaluation [3]. - KR's P/B has varied between 2.73 and 3.57 over the past year, with a median of 3.06 [3]. - The P/CF ratio for KR is 6.97, well below the industry average of 17.53, indicating strong cash flow relative to its market value [3]. - KR's P/CF has been between 5.09 and 6.97 in the last 12 months, with a median of 5.77 [3]. Investment Outlook - The combination of these valuation metrics suggests that The Kroger Co. is likely undervalued at present, making it an attractive value stock based on its earnings outlook [4].