#1 - Kroger (NYSE:KR)
The Kroger Co. (NYSE: KR) is a great boring stock to lead off our list. The company operates in the consumer staples sector, which is a defensive sector that performs well regardless of strength or weakness in the U.S. economy.
Kroger just reported earnings that beat analysts’ expectations and provided full-year 2023 guidance that was well above analysts’ expectations. Analysts tracked by MarketBeat currently give Kroger a consensus Hold rating, but that could change after earnings.
As the last two years have demonstrated, even in the fact of historically high inflation, consumers will still buy groceries. And Kroger is benefiting as consumers increasingly turn to private label brands. In fact, on the conference call Kroger conducted after its fourth-quarter earnings report, chief executive officer (CEO) Rodney McMullen said that shopping at Kroger could be four times cheaper than dining out.
One concern would be the debt the company took on due to its merger with Albertson’s. But Kroger has no problem in the cash flow department and announced that it will be deploying that cash to deleverage rather than to buyback shares.
About Kroger
The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.
Read More - Current Price
- $54.20
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $55.17 (1.8% Upside)
