Key statistics

Is KR a good stock to buy in 2026?

Given its significantly high P/E ratio of 40.8x compared to the sector average of 12.4x, KR stock appears overvalued by traditional metrics. However, a discounted cash flow (DCF) analysis suggests an intrinsic value of $113.81, indicating a potential 72.7% undervaluation. Analysts maintain a “Buy” consensus with 47.7% recommending a purchase, suggesting mixed signals on whether is KR a good stock.

2026 KR price scenarios

Based on analyst consensus of $74.75 from 44 analysts. Not a prediction by Alert Invest.

About The Kroger Co. (KR)

The Kroger Co. operates as a retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses.

The Kroger Co., led by CEO Gregory S. Foran, is one of the largest grocery retailers in the United States, employing approximately 409,000 associates. Its distinctive strengths lie in its vast network of diverse store formats, including supermarkets, superstores, hypermarkets, and convenience stores, catering to a wide range of consumer needs. This extensive footprint and localized approach allow Kroger to maintain strong customer loyalty and market presence across numerous regions, making KR stock a significant player in the consumer defensive sector.

KR competitive moat and business analysis

Kroger’s competitive advantage in the highly saturated grocery industry primarily stems from its immense scale, well-established brand recognition, and robust supply chain. While its net margin of 0.69% might appear thin, common for the grocery sector, it reflects high sales volume and efficient operations. Unfortunately, ROE and ROIC data are not available for direct analysis, making it challenging to fully assess the capital efficiency from these metrics. The company relies on its ability to offer competitive pricing and a broad product assortment to drive traffic and maintain market share for KR stock.

The company’s revenue primarily comes from its extensive network of combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses across the United States. Specific segment or geographic revenue breakdowns were not provided in the available data for fiscal year 2025. However, this diversified portfolio allows Kroger to serve various customer demographics and adapt to regional preferences, further solidifying its presence in the consumer defensive sector.

Despite its strong market position, Kroger’s revenue growth year-over-year stands at a modest +0.4%. This slow growth suggests that while the company maintains its moat through scale and operational efficiency, it faces challenges in achieving significant top-line expansion in a mature and competitive industry. The absence of a recent transcript quote prevents specific commentary on management’s outlook or strategic initiatives regarding moat strengthening for KR stock.

When evaluating KR stock, it’s insightful to consider its performance relative to peers in the Consumer Defensive sector. For a comprehensive look, investors might compare KR vs ABEV, KR vs CCEP, and KR vs DEO. These comparisons can highlight differences in valuation, growth prospects, and operational efficiencies, providing a broader perspective on KR’s standing within its industry and the wider market, influencing discussions around KR valuation and whether is KR a good stock.

The Kroger Co. analyst rating

Based on 44 analysts. 47.7% rate KR Buy or Strong Buy.

A 47.7% ‘Buy’ rating among 44 analysts is generally considered a moderately positive signal for a Consumer Defensive stock, indicating a significant portion of the analyst community sees upside potential for KR stock. However, the presence of 38.6% ‘Hold’ ratings suggests caution or a belief that the stock is fairly valued at its current price.

Is KR undervalued or overvalued?

Assessing KR valuation requires looking beyond a single metric. While KR’s P/E ratio of 40.8x is notably higher than the Grocery Stores sector average of 12.4x, suggesting the stock might be expensive relative to its peers, other indicators present a different picture. The Price-to-Book (P/B) ratio of 6.99x also points towards a premium valuation, prompting questions about whether is KR a good stock at its current price.

However, a Discounted Cash Flow (DCF) analysis pegs KR’s fair value at $113.81, indicating the stock is potentially undervalued by 72.7%. Furthermore, the Price-to-Sales (P/S) ratio of 0.28x is relatively low, often seen as a sign of undervaluation, especially for a company with $147.64B in revenue. This mixed bag of metrics means investors must weigh the high P/E against the strong DCF and P/S signals when determining if KR stock is an appropriate addition to their portfolio, carefully considering its overall KR valuation.

KR financial health & key metrics

For value investors considering KR stock, the financial health presents a mixed but intriguing profile. While the high debt-to-equity ratio of 4.16x and thin net margin of 0.69% signal potential areas of concern regarding financial leverage and profitability efficiency, the robust Free Cash Flow (FCF) yield of 8.46% and a DCF fair value indicating 72.7% undervaluation offer a compelling argument. Despite modest revenue growth of 0.4%, the strong FCF generation suggests that the company is effectively converting sales into cash, a critical factor for long-term stability and shareholder returns. The elevated P/E ratio, however, warrants careful consideration against the positive cash flow and intrinsic value estimates for KR valuation.

The Kroger Co. earnings history & next report

The Kroger Co. reported EPS of $1.28, beating estimates by 6.67%. Next earnings: 2026-06-19 with EPS estimate of $1.58.

The Kroger Co. successfully surpassed its last earnings estimates, reporting an EPS of $1.28 and beating expectations by 6.67%. Looking ahead, the next earnings report for KR stock is scheduled for 2026-06-19, with an estimated EPS of $1.58. Investors will closely watch this report for signs of continued profitability, especially given the current economic climate, and any updates on strategies to address the relatively slow revenue growth and high P/E ratio, all of which will impact the future KR valuation and discussions around whether is KR a good stock.

KR daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

KR insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent KR analyst rating changes

The Kroger Co. stock news today

How does KR compare to its peers?

For investors seeking diversification or alternative opportunities within the Consumer Defensive sector, comparing KR stock against its peers can provide valuable context. The grocery and beverage industries feature several strong players, each with unique market positions and financial profiles.

FAQ — The Kroger Co. (KR) stock