Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Kroger ( KR) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Kroger as such a stock due to the following factors:
- KR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $236.0 million.
- KR is up 2.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KR with the Ticky from Trade-Ideas. See the FREE profile for KR NOW at Trade-Ideas More details on KR: The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. The stock currently has a dividend yield of 1.6%. KR has a PE ratio of 14.1. Currently there are 7 analysts that rate Kroger a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Kroger has been 4.0 million shares per day over the past 30 days. Kroger has a market cap of $21.7 billion and is part of the services sector and retail industry. The stock has a beta of 0.95 and a short float of 2.2% with 2.01 days to cover. Shares are up 6.2% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, KR's share price has jumped by 37.93%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food & Staples Retailing industry and the overall market, KROGER CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $304.00 million or 29.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.91%.
- KROGER CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KROGER CO increased its bottom line by earning $2.77 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $2.77).
- You can view the full Kroger Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.