From Yahoo Finance: 2025-05-01 08:15:00

Kroger’s stock has outperformed the S&P 500 by nearly 30% in the past year, showcasing robust sales growth, digital strategies, and buybacks. While facing challenges like tariffs and trade wars, Kroger aims to sustain its recovery in 2025. Identical sales growth turned positive in 2024, with adjusted EPS increasing by 8%.

In 2023, Kroger saw a slowdown in identical sales due to inflation, deflation, and competition. However, by 2024, sales rebounded, digital sales accelerated, and gross margins stabilized. Despite a 6% dip in adjusted EPS, Kroger’s strategic focus on higher-margin products and digital expansion paid off.

For 2025, Kroger projects a 2%-3% rise in identical sales and a 3%-7% increase in adjusted EPS. Analysts expect a 6% growth in adjusted EPS. Kroger’s recovery catalysts from 2024 are expected to persist, aided by a new agreement with Express Scripts and diminishing headwinds.

Kroger’s stability amidst unpredictable tariffs and trade wars is key to its growth. With a new interim CEO and plans to diversify suppliers, Kroger remains optimistic. Analysts predict a 9% rise in adjusted EPS for 2026, making Kroger an attractive investment with a low valuation and consistent dividend growth.



Read more at Yahoo Finance: Where Will Kroger Stock Be in 1 Year?