Why the Kroger Stock Will Reach All-Time-Highs by 2024

Utradea
3 min readAug 7, 2022

Photo by: Rithika Gopalakrishnan

My Kroger Stock Forecast is $66.07

My KR stock price prediction of $66.07 was arrived at by undergoing 2 main valuation methods (which are averaged for the final price target). I’ll explain each approach and show you how I arrived at a stock price forecast of $66.07 for KR.

  1. KR PE and EPS Analysis
  2. KR Comparable Analysis

Financial Ratios to Determine a Kroger Stock Forecast

This section will focus on KR’s forward P/E and EPS estimates to get a rough estimate for their stock price in 2024.

KR’s forward EPS is expected to reach by 2024. Furthermore, Kroger’s forward P/E Ratio has been forecasted to reach $4.05 (and has been trending upward)11.67 by 2024 as well. By multiplying Kroger’s forward PE and EPS we can reach a Kroger stock forecast of $47.26 per share (which is very close to their current stock price of $47.25).

Kroger Stock Forecast Via Comparable Analysis

Who does Kroger Compete With?

We need to outline KR’s main competitors, who each need to have; a stock, financial ratios, operate in a similar manner, and a market cap similar to KR (if possible).

Here is a list of KR’s closest competitors:

TSN, ADM, HSY, ABEV, SYY, GIS, FMX, HRL

Determining My Second Kroger Stock Forecast

  1. Price to Book (P/B): KR’s current P/B ratio is 3.62, compared to the average P/B ratio of KR’s peers being 7.29. This implies that KR is undervalued and their share price should change by a factor of 101.16% to be at fair value (based on KR’s P/B compared to the P/B of its peers).
  2. Price to Earnings (P/E): KR stock P/E ratio is currently 16.35, compared to the average P/E ratio of KR’s peers being 25.85. This implies that KR is undervalued and its share price should change by a factor of 58.1% to be at fair value (based on KR’s P/E compared to the P/E of their peers).

The Kroger stock is undervalued and should increase by (an average of) 79.63% to reach its “fair value”. If this were to happen, given Kroger’s current price of $47.25, would imply a future price of $84.87 for the KR Stock.

Kroger Stock Analysts Are Divided

Kroger is a heavily covered stock by analysts, and as a result, there are 33 analyst ratings that have been given to the KR stock, which are distributed as follows:

10 Buys

12 Holds

11 Sells

As you may have been able to tell 30.3% of analysts have given the KR stock a ‘buy” rating. Based on the current KR analyst ratings there seems to be an overall bearish sentiment, with analyst “buy” ratings forming a minority of total ratings given. When taking everything into account, the “sell” ratings narrowly beat out the “buy” ratings, meaning that if anything, analysts have a very slight overall bearish sentiment.

Concluding My Kroger Stock Analysis

Due to the fact that my Kroger stock forecast is $66.07 per share, and the KR stock having a current price of $47.25. I would disagree with the slight bearish analyst sentiment and say that the Kroger stock is a buy.

Let me know what you think, I would be happy to hear any questions and/or comments!

Originally published at https://utradea.com.

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