KR Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Kroger Co. (KR) is not a strong buy for a beginner, long-term investor at this moment. The company's recent financial performance shows significant challenges, including a sharp decline in net income and EPS. While the technical indicators suggest a neutral to slightly positive trend, there are no strong trading signals or catalysts to justify immediate action. The options market sentiment is slightly bullish, but the overall stock trend indicates potential short-term downside. Analysts' ratings are mixed, with reduced price targets reflecting cautious optimism. Given the user's preference for long-term investment, it's better to wait for clearer signs of recovery or stronger growth prospects.
The MACD is positive and expanding, indicating a bullish momentum. The RSI is in the neutral zone, suggesting no overbought or oversold conditions. Moving averages are converging, showing no clear trend. The stock is trading near its R1 resistance level of 71.611, with key support at 67.229. Overall, the technical indicators are neutral to slightly bullish.
Valentine's Day promotions could drive short-term sales.
Shift in investor focus towards consumer staples may benefit Kroger.
Gross margin improved YoY, indicating better cost management.
Net income and EPS have significantly declined YoY, reflecting financial struggles.
Analysts have lowered price targets, with mixed ratings.
Stock trend analysis indicates potential short-term downside (-2.74% next day, -0.87% next week, -3.16% next month).
In Q3 2026, revenue increased slightly by 0.67% YoY to $33.86 billion. However, net income dropped sharply to -$1.32 billion (-315.50% YoY), and EPS fell to -2.02 (-340.48% YoY). Gross margin improved to 21.03% (+2.09% YoY), but overall financial performance is weak.
Analysts have mixed ratings on Kroger. Deutsche Bank resumed coverage with a Buy rating and a $75 price target, citing potential tailwinds in 2026. However, several firms, including Barclays, Citi, and Morgan Stanley, have lowered price targets, reflecting cautious optimism. The consensus is neutral to slightly positive, with concerns about near-term challenges.
