Kroger is undervalued in my opinion. Here is an experpt from “The Street” report on KR, “The company’s strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally poor debt management on most
measures that we evaluated.”
The Street rates KR a buy according to their 6/21/09 update. I already own 1/2 of my target investment goal for KR, I plan to add another 1/4 of my planned investment for KR as soon as the stock crosses 21.50 a share.
Other great reasons to own KR:
1. improved earnings per share by 10.4% in the most recent quarter compared to the same quarter a year ago.
2. outperformed against the S&P 500 and exceeded that of the Food & Staples Retailing industry average
3. Demand for basic products remains stable regardless of economic conditions.
Read my April 3, 2009 opinion on KR: