The Kroger Co. (KR), headquartered in Cincinnati, Ohio, operates supermarkets, multi-department stores, and fulfillment centers. Valued at $41.4 billion by market cap, the company offers meat, seafood, bakery, dairy, frozen, cleaning, kitchen, beverages, health, electronics, toys, vegetables, fruits, beauty, and household products.
Shares of this supermarket chain have underperformed the broader market over the past year. KR has declined 8.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.5%. However, in 2026, KR stock is up 7.1%, surpassing the SPX’s 6% rise on a YTD basis.
Narrowing the focus, KR’s underperformance is also apparent compared to the iShares US Consumer Staples ETF (IYK). The exchange-traded fund has gained about 1.5% over the past year. However, KR’s gains on a YTD basis outshine the ETF’s 6.7% returns over the same time frame.
On Mar. 5, KR shares closed up more than 5% after reporting its Q4 results. Its adjusted EPS of $1.28 exceeded Wall Street expectations of $1.20. The company’s revenue was $34.7 billion, falling short of Wall Street forecasts of $35.1 billion. KR expects full-year adjusted EPS in the range of $5.10 to $5.30.
For fiscal 2026, ending in January 2027, analysts expect KR’s EPS to grow 8% to $5.24 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering KR stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, and 12 “Holds.”
This configuration is less bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On Mar. 11, Telsey Advisory analyst Joe Feldman reiterated a “Buy” rating on KR and set a price target of $82, implying a potential upside of 22.5% from current levels.
The mean price target of $76.43 represents a 14.2% premium to KR’s current price levels. The Street-high price target of $86 suggests an upside potential of 28.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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