The Kroger Co. (KR), based in Cincinnati, Ohio, has grown into one of America’s largest and most beloved grocery chains. With a market cap of $37.7 billion, Kroger’s sprawling network of stores and digital platforms serves millions nationwide.

Beyond groceries, Kroger offers pharmacy services, fuel centers, and innovative tech-driven shopping experiences. Its blend of convenience, quality, and affordability keeps it at the forefront of U.S. retail, making Kroger a go-to destination in an ever-evolving market. From fresh produce to household essentials, Kroger continues to shape how America shops.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and Kroger perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.

The retail major has tumbled 11.7% from its 52-week high of $58.34, which it hit on April 3. Shares of KR are up marginally over the past three months, underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.8% gains over the same time frame.

Over the longer term, KR stock has rallied 13.4% over the past year, and in 2024, the stock is up 12.7%. By contrast, XLP is up 15% on a YTD basis and 14.5% over the past 52 weeks.

The stock has been trading above its 50-day moving average since July but dipped recently. However, it has been trading above its 200-day moving average since mid-February, suggesting a generally bullish trend with recent short-term fluctuations. 

Kroger's stock has shown strong performance this year, largely due to strategic initiatives and operational successes. The company made a notable start by introducing senior-focused primary care services in Atlanta in collaboration with Better Health Group. Additionally, Kroger entered the growing GLP-1 market, which has contributed to its positive momentum. Plus, the retailer’s increased customer base, enhanced loyalty, and expanded advertising capabilities have further fueled its performance.

Yet, on June 20, despite a solid Q1 earnings result - revenue of $45.27 billion, surpassing forecasts, and impressive digital sales - KR shares slipped over 3%. The dip came as the company’s full-year EPS forecast of $4.30 to $4.50 range fell short of Wall Street’s consensus estimate of $4.43, leaving investors cautious despite strong underlying results.

Rival Walmart Inc. (WMT) has outperformed KR. WMT stock has returned 43.9% in the past 52 weeks and is up 50% on a YTD basis.

Despite its recent underperformance compared to XLP, analysts are optimistic about KR’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $59.97 is a premium of 16.4% to current levels.

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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.