Of 23 analysts covering Kroger stock, 13 have Hold ratings. Nine have a Buy or Strong Buy rating, and just one rates the stock at Sell. At a recent share price of around $43.00, the upside potential based on a median price target of $51.00 is 18.6%. At the high price target of $75.00, the upside potential is 88.4%.
Fiscal fourth-quarter revenue is forecast at $34.89 billion, which would be up 2.0% sequentially and by 5.5% year over year. Adjusted EPS are tabbed at $0.90, up 2.7% sequentially but down by a penny year over year. For the full 2023 fiscal year that ended in January, Kroger is expected to post EPS of $4.15, up 12.7%, on sales of $148.56 billion, up 7.7%.
The stock trades at 10.4 times expected 2023 EPS, 10.3 times estimated 2024 earnings of $4.22 and 10 times estimated 2025 earnings of $4.31 per share. The stock’s 52-week trading range is $41.81 to $62.78. Kroger pays an annual dividend of $1.04 (yield of 2.4%). Total shareholder return for the past year was negative 5.6%.
Macy’s
Shares of Macy’s Inc. (NYSE: M) have tumbled by nearly 21% over the past 12 months. Since reaching a 52-week low in late September, however, the stock is up almost 36%. Most of that gain first showed up in early November, then disappeared only to come back by early February before falling again. That roller-coaster follows the route of consumer confidence and spending, both of which have bounced around in the second half of last year and the first two months of this year.
Macy’s has announced four store closures for this year (so far). Hedge fund Renaissance Technologies cut its position in the stock by 63% in the fourth quarter and now owns less than 2% of Macy’s outstanding shares. Not exactly a vote of confidence in the company.
Seven of 19 analysts rate Macy’s stock as a Buy or a Strong Buy. Another nine have Hold ratings. At a share price of around $20.50, the upside potential based on a median price target of $25.00 is about 22%. Based on a high price target of $30.00, the potential upside on the shares is 46.3%.
Analysts are forecasting fiscal fourth-quarter revenue of $8.27 billion, up 58.1% sequentially but 4.6% lower year over year. Adjusted EPS of $1.59 are expected, which would up more than 200% sequentially and down 46.5% year over year. For the 2023 fiscal year that ended in January, analysts are looking for EPS of $4.17, down 21.6%, on sales of $24.49 billion, up less than 1%.
Macy’s stock trades at 4.9 times expected 2023 EPS, 5.3 times estimated 2024 earnings of $3.84 and 5.4 times estimated 2025 earnings of $3.82 per share. The stock’s 52-week range is $15.10 to $28.06. The company pays an annual dividend of $0.66 (yield of 3.24%). Total shareholder return for the past year was negative 18.5%.
Originally published at 24/7 Wall St.
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