Lots of grocery stores have done well. Prefers Costco. If you hold KR, it will continue to benefit, but Costco is a one-stop-shop. Consumers don't want to traipse around to different stores.
Grocers are tough, operating on skinny margins. You have big competition. WMT-N and AMZN-Q are big into grocery. He owns WMT-N.
A serial dividend grower? Traditional grocery stores are threatened by Amazon and hard discounters (in the U.S.). The latter dominate Europe and are a rising threat in North America. He prefers Costco who have the lowest prices anywhere; they also have the best demographics of anyone selling groceries, the wealthy, which makes Costco very defensive/safe.
A serial dividend grower? Traditional grocery stores are threatened by Amazon and hard discounters (in the U.S.). The latter dominate Europe and are a rising threat in North America. He prefers Costco who have the lowest prices anywhere; they also have the best demographics of anyone selling groceries, the wealthy, which makes Costco very defensive/safe.
PE only at 10 times? He would buy Amazon instead -- they will steal market share from them. You could by KR-N and still do well, but there needs to be more upward momentum to excite him.
(A Top Pick November 13, 2017. Up 34%). He bought this stock expecting inflationary food prices to take it up, then tripled his position when Amazon caused a panic by buying Whole Foods. He sold off the investment and has bought other consumer stocks with the proceeds.
This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.
This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.
This had a couple of issues. First there was food deflation, which tends to cause excess competition in the grocery sector. And then there was the Amazon purchase of Whole Foods. That took the company down from $30 to $20. This is selling at about 10X earnings, compared to Loblaw’s (L-T) selling at 17-18 times. Kroger has a little more debt, but own half their stores. The largest retailer in the US. Dividend yield of 2.3%. (Analysts’ price target is $23.)
This had a couple of issues. First there was food deflation, which tends to cause excess competition in the grocery sector. And then there was the Amazon purchase of Whole Foods. That took the company down from $30 to $20. This is selling at about 10X earnings, compared to Loblaw’s (L-T) selling at 17-18 times. Kroger has a little more debt, but own half their stores. The largest retailer in the US. Dividend yield of 2.3%. (Analysts’ price target is $23.)
Kroger Co. is a American stock, trading under the symbol KR-N on the New York Stock Exchange (KR). It is usually referred to as NYSE:KR or KR-N
In the last year, 5 stock analysts published opinions about KR-N. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is DON'T BUY. Read the latest stock experts' ratings for Kroger Co..
Kroger Co. was recommended as a Top Pick by Jim Cramer - Mad Money on 2021-04-07. Read the latest stock experts ratings for Kroger Co..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
5 stock analysts on Stockchase covered Kroger Co. In the last year. It is a trending stock that is worth watching.
On 2021-04-22, Kroger Co. (KR-N) stock closed at a price of $37.43.