Latest Breakdown of This Falling Grocery Chain

KR is up about 42% over the past twelve months

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The Kroger Co. (NYSE KR) is one of the world's largest food retailers by sales. KR primarily operates supermarkets and multi-department stores throughout the United States. On May 4, Kroger announced the second year of their Go Fresh & Local Supplier Accelerator program. The program provides a pathway for local businesses by allowing American-based growers and producers the chance to work directly with their retail stores. At last check, KR is trading down 1.3% at $54.45.

Kroger stock has increased about 42% year-over-year and is up 50% since hitting a bottom of $35.91 last May. Additionally, shares of KR have grown 21% year-to-date, but struggle to make any breakouts, with the 10-day moving average looming closely overhead. 

Furthermore, Kroger stock continues to offer an attractive valuation at a forward price-earnings ratio of 13.61 and a price-sales ratio of 0.29. The food retailer also offers a dividend yield of 1.53% with a forward dividend of $0.84, making KR best suited for long-term investors.

KR holds a fairly awful balance sheet with $20.44 billion in total debt and just $1.82 billion in cash. Still, the grocery giant's needs-based business model provides investors a decent level of security. Overall, Kroger stock's fundamentals suggest KR trades at fair value given the low reward potential.

In the options pits, puts look to be popular. Specifically, Kroger stock's 10-day put/call ratio of 1.89 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 99th percentile of its annual range. Simply put, these traders have had a penchant for bearish bets in the last two weeks. 

Lastly, It looks like KR tends to outperform volatility expectations. This is according to the equity's Schaeffer's Volatility Scorecard (SVS) rank of 95 (out of a possible 100).

 

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