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Kroger Co.

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Wrong-way earnings play on Kroger offers opportunity to buyKroger reported blow-out earnings and sales today, handily beating both the Wall Street and Estimize consensuses. The stock is moving down, however, perhaps because this quarter's earnings were a blip and next quarter's earnings are expected to be in a more normal range. I could see the stock selling off over the next month or so as the "Covid-19 bump" goes away. However, some increased demand will remain over the next few quarters as consumers remain too scared to eat at restaurants. Next quarter's estimates are lower than the current quarter, but still quite a bit higher than 2019 YoY. Also, Kroger's increased cash flow this quarter will get reinvested into the business, leading to higher earnings in the future. Based on Zacks estimates of Kroger earnings for 2021, I estimate the stock's fair value at around $37 per share. We've got a support around $31 per share today, but the reality is that we probably will break that support and continue downward toward the volume support at $28.50. And since it's the slow season, I wouldn't even be surprised to see Kroger hit secondary volume support at $25. I will be scaling in as the stock falls, because I think Kroger is an attractive, dividend-paying investment for a recessionary environment.
NYSE:KR
by ChristopherCarrollSmith
6
Kroger - Buy the dip?Grocery giant Kroger ( NYSE:KR ) reported quarterly earnings of $1.22 per share, which beat the analyst consensus estimate of $1.09 by 11.93%. Kroger also reported quarterly sales of $41.55 billion, which beat the analyst consensus estimate of $40.72 billion by 2%. The stock quickly sold off at the open and the stock is down approximately 6% as of 2:00pm ET. The question I am asking myself is "Will Kroger bounce back up from here?" Aside from the positive fundamental data, a quick look at the chart above shows that Kroger rarely crosses below its 100 day exponential moving average. In the past, you can observe that when Kroger's stock price dips below the 100 day EMA, it tends to bounce back up and continue its prevailing trend. So, it is possible the 100 day EMA might act as a support area. Let's see what happens over the next few days.
NYSE:KRLong
by UnknownUnicorn6775423