Kroger Shares a Beat-and-Raise for Its Latest Quarter

The stock has added over 34% in the last 12 months

Digital Content Manager
Jun 16, 2022 at 9:35 AM
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Kroger Co (NYSE:KR) stepped into the earnings confessional this morning, posting first-quarter earnings of $1.45 per share on revenue of $44.6 billion, topping analysts' estimates. The company also lifted its full-year guidance, citing steady demand for essentials like groceries and household goods, even as inflation rises. However, another broad-market breakdown, plus a drop in its quarterly gross sales margin, are weighing on the equity. KR was last seen down 3.3% at $49.18.

Despite today's dip, Kroger stock has shown incredible staying power, all things considered. The security boasts a 12.4% year-to-date lead, and has added 34.4% year-over-year. Several moving averages still sit below as potential support, including the 200-day trendline, which captured a a sharp pullback late last month. 

Analysts have yet to chime in, though there's plenty of room for bull notes down the line. Of the 18 in coverage, just four consider it a "strong buy," compared to 10 "hold" and four "strong sell" ratings. Plus, the 12-month consensus price target of $55.46 is a mere 9% premium to last night's close. 

An unwinding of pessimism in the options pits could also put some wind at Kroger stock's back. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.93 puts have been picked up for every call during the past two weeks. This ratio sits in the 97th percentile of its 12-month range, implying a much healthier-than-usual appetite for puts of late. 

The stock's Schaeffer's put/call open interest ratio (SOIR) reflects this. Sitting a 2.36, this ratio stands higher than all other annual readings, meaning short-term options players haven't been more put-biased during this time period. 

 

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