Kroger Poised for Growth as Evercore ISI Projects Strong Q4 Performance

Kroger Co. (NYSE: KR) is a major player in the grocery and retail department sector. On June 20, 2025, Kroger reported earnings per share (EPS) of $1.49, surpassing the estimated $1.45. The company generated revenue of $45.12 billion, slightly below the estimated $45.16 billion. Despite the revenue miss, the positive EPS surprise contributed to a 10% surge in Kroger's stock price.

Kroger's adjusted EPS of $1.49 for the quarter ending May 24 exceeded Wall Street expectations, while total revenue reached $45.12 billion. The company's management maintained its full-year earnings outlook and raised its full-year revenue forecast, signaling confidence in its financial performance. This positive outlook, as highlighted by Kroger's CFO David Kennerley, surprised investors and contributed to the stock's positive market reaction.

Kroger's strategic initiatives include optimizing its store network and focusing on core operations. The company plans to close approximately 60 underperforming stores over the next 18 months while completing 30 major store projects this fiscal year. Kroger aims to accelerate new store openings in fiscal 2026, targeting high-growth areas to increase total square footage and improve average store productivity.

Financially, Kroger has a price-to-earnings (P/E) ratio of approximately 18.66, indicating the market's valuation of its earnings. The company's price-to-sales ratio stands at about 0.33, suggesting a relatively low market valuation compared to its revenue. Kroger's enterprise value to sales ratio is approximately 0.49, reflecting the company's total valuation in relation to its sales.

Kroger's debt-to-equity ratio is notably high at approximately 3.03, indicating a significant reliance on debt financing. The current ratio is approximately 0.96, suggesting that the company has slightly less than enough current assets to cover its current liabilities. Despite these financial metrics, Kroger's strategic initiatives and positive earnings outlook position it for future growth.

Kroger Co. (NYSE: KR) is a major player in the retail industry, known for its extensive network of grocery stores and eCommerce platform. The company is headquartered in Cincinnati and serves over 11 million customers daily. Kroger is committed to its mission of creating #ZeroHungerZeroWaste communities, reflecting its focus on sustainability and community support.

Kroger is set to release its quarterly earnings on June 20, 2025. Analysts expect the company to report earnings per share (EPS) of $1.44, a slight increase from $1.43 in the same period last year. This stability in earnings estimates is crucial as it often influences investor behavior and can impact the short-term price performance of the stock.

The company's revenue is projected to reach approximately $45.3 billion, a marginal increase from $45.27 billion a year ago. This growth, although modest, indicates a steady performance in a competitive market. Kroger's previous quarter saw adjusted earnings per share of $1.14, surpassing expectations, although sales fell short of estimates.

Kroger's stock recently saw a 0.7% increase, closing at $66.01. Telsey Advisory Group analyst Joseph Feldman has maintained an Outperform rating for Kroger, setting a price target of $73. This positive outlook reflects confidence in Kroger's ability to deliver consistent financial performance.

Kroger's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 17.10, while the price-to-sales ratio stands at about 0.30. The enterprise value to sales ratio is around 0.47, and the enterprise value to operating cash flow ratio is approximately 11.85. These figures highlight Kroger's valuation and cash flow generation relative to its sales.

• Greg Landsman engaged in a significant transaction involving shares of The Kroger Co. (NYSE:KR), valued between $250,001 and $500,000.
• Kroger is adapting to industry challenges by evolving its product offerings and refining merchandising strategies amidst strong growth in the Zacks Retail - Supermarkets industry.
• Kroger's current stock price is $66.80, with a market capitalization of approximately $44.15 billion, reflecting its significant presence in the retail industry.

On May 9, 2025, Greg Landsman engaged in a significant transaction involving shares of The Kroger Co. (NYSE:KR), valued between $250,001 and $500,000. Kroger is a major player in the retail supermarket industry, competing with giants like Walmart Inc. The company is known for its extensive grocery offerings and innovative retail strategies.

The Zacks Retail - Supermarkets industry is currently experiencing strong growth, largely due to consistent consumer demand and the integration of AI-driven omnichannel innovations. This trend is setting up major players like Kroger for long-term success. Despite challenges such as rising operational costs related to labor, store upgrades, and technology investments, Kroger is adapting by evolving its product offerings and refining merchandising strategies.

Kroger's current stock price is $66.80, reflecting a decrease of 1.02% or $0.69. Today, the stock has traded between a low of $66.12 and a high of $67.61. Over the past year, the stock has reached a high of $73.63 and a low of $49.04. This fluctuation indicates the dynamic nature of the retail market and the challenges faced by companies like Kroger.

Kroger has a market capitalization of approximately $44.15 billion, highlighting its significant presence in the retail industry. The trading volume for the day is 2,093,156 shares on the New York Stock Exchange, indicating active investor interest. As Kroger continues to navigate industry challenges, its strategic adaptations are crucial for maintaining its market position.

Melius Research downgraded Kroger (NYSE:KR) to Sell, assigning a $58 price target, citing a sharp erosion in the grocery chain’s competitive edge as Walmart reasserts itself as the dominant force in U.S. grocery retail.

Analysts reflected on a period from 2013 to 2015 when Kroger nearly rivaled Walmart, thanks to tighter pricing, superior service, and a higher-quality offering. During that era, Walmart was struggling and losing ground, with Kroger's price gaps ranging from just 5% to 8%.

But the landscape has changed. Walmart has staged a significant comeback, now outperforming conventional grocers across multiple categories. The company’s resurgence has been fueled by wider pricing advantages, stronger service, better fresh food execution, improved merchandising, and a clear lead in digital retail.

As a result, Kroger is increasingly losing share, struggling to match Walmart’s momentum in both store performance and customer experience.

Melius now views Kroger’s stock as overvalued relative to its deteriorating position in the market, with limited upside potential amid intensifying competition.

Melius Research downgraded Kroger (NYSE:KR) to Sell, assigning a $58 price target, citing a sharp erosion in the grocery chain’s competitive edge as Walmart reasserts itself as the dominant force in U.S. grocery retail.

Analysts reflected on a period from 2013 to 2015 when Kroger nearly rivaled Walmart, thanks to tighter pricing, superior service, and a higher-quality offering. During that era, Walmart was struggling and losing ground, with Kroger's price gaps ranging from just 5% to 8%.

But the landscape has changed. Walmart has staged a significant comeback, now outperforming conventional grocers across multiple categories. The company’s resurgence has been fueled by wider pricing advantages, stronger service, better fresh food execution, improved merchandising, and a clear lead in digital retail.

As a result, Kroger is increasingly losing share, struggling to match Walmart’s momentum in both store performance and customer experience.

Melius now views Kroger’s stock as overvalued relative to its deteriorating position in the market, with limited upside potential amid intensifying competition.

Evercore ISI analysts reaffirmed an Outperform rating on Kroger (NYSE:KR) with a $75 price target, citing potential for an 8-10% upside in the stock ahead of its fourth-quarter earnings release on March 6.

Kroger continues to demonstrate resilience in a challenging consumer environment, executing effectively and benefiting from a modestly favorable industry backdrop. While skepticism remains among some investors, the company is expected to gain further recognition for its defensive growth characteristics.

Analysts forecast a solid fourth-quarter performance, with earnings per share projected at $1.14, slightly surpassing the Street’s expectation of $1.11. Identical sales growth is also anticipated to slightly exceed the consensus 2% estimate. Additionally, the reinstatement of Express Scripts (ESI) is expected to provide a meaningful boost to sales momentum.

Looking forward, Kroger’s full-year guidance could range from $4.75 to $4.95 per share, aligning with its historical 8-11% total shareholder return (TSR) framework. Growth catalysts include sticky inflation, increased consumer value focus, and demand for healthier eating options. With sustained EBITDA expansion and share repurchases complementing its sales trajectory, Evercore analysts believe that Kroger appears well-positioned to continue delivering strong financial performance in 2025 and beyond.