Kroger Co (KR) Stock AnalysisKRKroger Co

The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,697 supermarkets, 2,250 pharmacies and 1,731 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,408 of its supermarkets and provides delivery, which allows it to offer digital solutions to its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces. It operates in the Consumer Non-Cyclicals sector (RETAIL-GROCERY STORES industry).

Kroger Co is a good buy right now due to its current price of $63.63, which is below the average analyst price target of $75. Additionally, the forward P/E ratio of 11.33 suggests the stock is undervalued compared to its earnings potential. The recent layoff plan, aiming to cut one-third of corporate staff, is expected to enhance operational efficiency and redirect funds to improve customer service and lower prices, which could drive sales growth. However, the risk includes a recent negative net income of -1.32 billion USD in Q3 2026, indicating potential volatility in earnings.

25 analysts cover KR: 9 rate it Buy, 14 Hold and 2 Sell. The average price target is 75.00.