The Street.com rates Kroger Co (NYSE:KR) a buy. The Kroger Co., together with its subsidiaries, operates as a food retailer in the United States. The company operates four formats of supermarkets: combination food and drug stores (combo stores), multi department stores, marketplace stores, or price impact warehouse stores.
My top reasons for rating KR a buy
1. KROGER CO has improved earnings per share by 10.4% in the most recent quarter compared to the same
quarter a year ago.
2. During the past fiscal year, KROGER CO increased its bottom line by earning $1.89 versus $1.70 in the prior year.
3. The company, on the basis of net income growth from the same quarter one year ago, has significantly
outperformed against the S&P 500 and exceeded that of the Food & Staples Retailing industry average.
4. Grocery sector has a’fixed’ client base. Demand for groceries remains stable regardless of economic conditions.
5. Law makers are considering legislation to prohibit Canadian pharmacies from selling prescription drugs to US mail-order customers in order to help domestic pharmacies. Which could help Kroger’s pharmacy revenues.
6. Kroger’s growth in income and cash flow are rated 5 stars out of 5. With the US population only growing 1% per year, Kroger’s growth is due to expansion, mergers and takeovers of other grocery retailers.
As of today, I am rating KR a buy at $21 per share. I will commit 1/4 of my KR investment dollars on this transaction. Full disclosure, I own KR shares.