Kroger stock: buy or sell
Jan 27th, 2021
Kroger stock brief
- Counting on Tuesday, it's been 4 consecutive sessions in positive for Kroger. Price closed on Tuesday at $37.07 after skyrocketing a 7.23%.
- On Tuesday, it broke out above $34.77, a resistance not crossed since last October.
- The price is currently above the upper Bollinger band, which often indicates a short-term correction
- Last Friday broke out above its latest top at $33.35
- On January 15 broke out above its latest top at $33.35
- The Kroger Co. operates as a retailer in the United States. The company operates supermarkets, multi-department stores, marketplace stores, and price impact warehouse stores.
Should I buy Kroger stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $KR stock a buy?
In the current situation of Kroger there is just one buy setup eligible:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Kroger can break to all-time highs any time soon, as it only needs to rise a 4.88%. The buy point is at $38.88 if you want to trade with this strategy. The stop loss would be set at $34.99
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$38.88||$34.99||10.00%|
Should I sell Kroger stock?
"To sell or not to sell", if you are holding Kroger stock?. Trading strategies let us to avoid impetuous decisions based on our personal emotions or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies should not be used for selling short Kroger stock
As a rule of thumb, you should never keep a trade that shows a losses greater than those expected by the time of purchase. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Kroger stock?
Currently, Kroger stock doesn't match any of our preferred sell setups, so if you own Kroger shares and your operation is in profit probably is not time to sell now
In the last 30 days, 2 brokerage ratings were published for Kroger
|Jan 7th, 2021|
|Jan 20th, 2021|
Kroger stock analysis
Supports and resistances
The current resistances are:
The current supports are:
When the price moves out of the band (above the upper line or below the lower line) it signals that the stock is currently maintaining a very strong momentum and therefore can correct the trend to the average. At this point, the price is over the upper band, meaning a short-term correction (at least) until it is under the band
Relative strength index
Climbed over the 70 level Tuesday, marking a value of 81.27. Breaking out above the level of 70 is not a sell signal, as stock price can rally during several weeks being in the overbought zone
Kroger stock price history
Kroger went public priced at an adjusted price1 of $0.03 on Jan 1977. Since then, KR stock surged by 123,466.67%, with an average of 2,806.06% per year. If you had invested $1,000USD in Kroger stock on Jan 1977, it would be valued $1,235,666.67 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Kroger stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions publish their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and many times. If you are a small investor you shouldn't buy or sell based on these price targets.
Averaging all price targets exposed below, the forecasted price for Kroger stock is $29.50. Kroger closed at $37.07 on Tuesday, so the target price is predicting a decrease by 20.42%.
|Brokerage firm||Price target|
|Jan 7th, 2021|
|Jan 20th, 2021|
Earnings and financials
In early December, The Kroger Co. ($KR) posted EPS for that slightly enhanced analysts' expectations. Quarterly EPS was $0.71 per share instead of $0.67. This quarterly report means an earnings surprise of 5.97%. On the contrary, the company said revenue was $29.7 billion aligned with analysts' estimates.Compared to the same quarter one year ago, EPS was $0.47, so posted EPS means a increase of 51.06%. Looking at revenue, figures moved up a 6.25% compared to $279.7B same quarter last year.
Kroger ($KR) posts earnings report next March. Expected for this quarter is $0.68, compared to $0.71 that was reported for Q3.
Kroger belongs to the Grocery Stores industry, which contain industry peers.
Kroger main competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Sprouts Farmers Market (SFM)||$2.5B||Neutral||0|
|Ingles Markets (IMKTA)||$850.9M||Neutral||0|
1 In the last 30 days.
To better understand Kroger stock performance you must compare its gains with other related stocks in same sector or industry.. For Kroger, the benchmark is made against Walmart, Sprouts Farmers Market and Ingles Markets.
|Sprouts Farmers Market (SFM)||16.70%||15.10%||-11.10%|
|Ingles Markets (IMKTA)||9.00%||21.30%||8.00%|
Please read:The comments written in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the specific scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for educative reasons only
|Tuesday, January 26th, 2021|
|Day range||$34.42 - $37.17|
|Average true range||$1.21|
|50d mov avg||$32.00|
|100d mov avg||$32.67|
|200d mov avg||$32.92|
|Earnings date||March 4th, 2021|