
Kroger (KR) Stock Forecast & Price Target
Kroger (KR) Analyst Ratings
Bulls say
Kroger's robust presence as one of the largest grocery retailers in the United States, with over 2,700 stores and a substantial market share, underpins its financial strength, with private-label sales contributing approximately 75% of its revenue. The company experienced a 4Q24 gross margin increase of 30 basis points year-over-year to 22.7%, driven by strategic initiatives such as the sale of Kroger Specialty Pharmacy and improved operational efficiencies. Additionally, Kroger's expansion into digital, fuel, health & wellness, and advertising/media sectors presents significant growth opportunities, likely enhancing its profit profile and supporting an expected increase in adjusted EPS to $4.81 for 2025.
Bears say
Kroger's lowered 2025 earnings per share (EPS) estimate to $4.79 from $5.06 reflects a challenging financial outlook, with a current expectation for 2024 adjusted EPS to only slightly exceed its guidance range. The operational expense ratio has deteriorated, increasing by 51 basis points to 19.3%, which could signal inefficiencies or rising costs impacting profitability. Additionally, broader economic risks, including volatility in commodity costs, rising interest rates, and weakened consumer confidence, further exacerbate Kroger's financial vulnerabilities, contributing to a negative outlook for the company's stock.
This aggregate rating is based on analysts' research of Kroger and is not a guaranteed prediction by Public.com or investment advice.
Kroger (KR) Analyst Forecast & Price Prediction
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