Kroger Maintains Steady Trading Range Amid Upcoming Earnings
Explore Kroger's latest earnings report featuring a solid P/E ratio of 16.23 and a moderate dividend yield of 1.79%, highlighting its stable market position.
The retail grocery leader, The Kroger Co. (KR), is set to announce its earnings before the market opens on Thursday, March 8. Since January 11, the stock has held above a "golden cross," having closed at $28.08 on that day. Currently, Kroger's shares are trading within a range bounded by a monthly value threshold of $26.69 and a weekly risk ceiling of $29.69. As of Tuesday, March 6, the stock closed at $28.01, marking a 2% gain year-to-date but remaining 10.9% below its January 30 peak of $31.45. Notably, the stock dipped to $26.63 on February 9, positioning it 5.2% above this recent correction low.
Market analysts anticipate Kroger will report earnings per share of 63 cents in the upcoming release. Following a positive reception to its previous earnings on November 30—which propelled the stock above its 200-day simple moving average—Kroger aims to continue its streak. According to Zacks Equity Research, surpassing estimates this quarter could extend Kroger's run to six consecutive revenue beats and two straight quarters of earnings surprises. A critical focus will be Kroger's strategic pivot towards enhancing its online shopping capabilities. (See also: What the Alibaba-Kroger Partnership Could Mean for Amazon.)
Technical Analysis: Daily Chart
Image courtesy of MetaStock Xenith
The stock has sustained its position above the "golden cross" since January 11, signaling potential upward momentum. This pattern occurs when the 50-day simple moving average surpasses the 200-day simple moving average, often indicating bullish prospects. After reaching a high of $31.45 on January 30, the stock retreated to a low near $26.63 in early February, slightly below the March monthly value level of $26.69. Currently, the price sits just under its 50-day moving average of $28.39, with the weekly risk threshold set at $29.69.
Technical Analysis: Weekly Chart
Image courtesy of MetaStock Xenith
The weekly chart indicates a bearish outlook if Kroger closes below its five-week modified moving average of $27.89. The stock remains under its 200-week simple moving average of $31.62, which often represents a mean reversion point. Additionally, the 12 x 3 x 3 weekly slow stochastic indicator is projected to decline to 49.80 by week's end, down from 60.69 recorded on March 2.
Based on this technical and fundamental analysis, investors are advised to consider purchasing Kroger shares during price dips near the monthly value level of $26.69 and to reduce holdings when the stock approaches the weekly risk level of $29.69.
Discover engaging topics and analytical content in Markets News as of 30-06-2019. The article titled " Kroger Maintains Steady Trading Range Amid Upcoming Earnings " provides new insights and practical guidance in the Markets News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Kroger Maintains Steady Trading Range Amid Upcoming Earnings " helps you make smarter decisions within the Markets News category. All topics on our website are unique and offer valuable content for our audience.