Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

It May Be a Good Time to Buy The Kroger Co. (KR). Here’s Why

Page 1 of 2

It might not be obvious to the casual observer, but right now, today, The Kroger Co. (NYSE:KR) stock offers one of the best values available in the supermarket industry. Why?

Three reasons.

Kroger is cheap
When you stack up Kroger stock against a couple of its smaller, faster-growing rivals — Harris Teeter Supermarkets Inc (NYSE:HTSI) and The Fresh Market Inc (NASDAQ:TFM) , it’s clear that The Kroger Co. (NYSE:KR) is the cheapest of the three. Its 12.0 price-to-earnings ratio is barely half the price Harris Teeter Supermarkets Inc (NYSE:HTSI) stock-shoppers pay, and less than a third of the price of a share of Fresh Market.

The Kroger Co. (NYSE:KR)

Now as I just mentioned, both Harris Teeter Supermarkets Inc (NYSE:HTSI) and The Fresh Market Inc (NASDAQ:TFM) are growing faster than Kroger. Analysts have The Kroger Co. (NYSE:KR) pegged for a bit more than 7% annual earnings growth over the next five years, while Harris is expected to grow a bit less than twice as fast, and Fresh Market a bit less than three times as fast. Emphasis on “a bit less” — as in, the disparities in growth rates aren’t big enough to justify the discounts on The Kroger Co. (NYSE:KR) stock: about two times versus Harris, and more than three times versus The Fresh Market Inc (NASDAQ:TFM).

Kroger’s a proven performer
It’s worth bearing in mind, too, that projections of future growth are really just guesses — and investors may be better advised to invest their money in facts. Over the past five years, Kroger has grown its profits at a very respectable 9.6% clip. So even if Harris Teeter Supermarkets Inc (NYSE:HTSI) might grow faster than The Kroger Co. (NYSE:KR) in the future, we know for a fact that its historic 4% earnings growth rate hasn’t measured up to Kroger’s. Similarly, analysts who hope to see Fresh Market outgrow Kroger by a factor of three in future years must admit that, so far, it hasn’t even been able to double Kroger’s growth rate.

It May Be a Good Time to Buy The Kroger Co. (KR) Stock. Here's Why
Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!