Stellantis cancels Ram 1500 electric pickup citing weak demand
Investing.com - BMO Capital has reiterated its Market Perform rating and $70.00 price target on Kroger (NYSE:KR) following the company’s better-than-expected fiscal second-quarter 2026 results. According to InvestingPro data, Kroger currently trades at an attractive PEG ratio of 0.72, suggesting potential undervaluation relative to its growth prospects.
The research firm noted that strong pharmacy trends continue to drive the majority of identical store sales growth for the grocery retailer, while grocery unit growth remains in negative territory.
BMO Capital observed that Kroger’s investments in fresh products and pricing are helping to improve underlying grocery trends, despite the ongoing challenges in unit growth.
The firm highlighted that Kroger’s management continues to take aggressive steps to evolve the business, particularly focusing on e-commerce and e-commerce profitability improvements.
BMO Capital maintained its earnings per share estimates for Kroger unchanged, suggesting that further valuation expansion would likely require stronger grocery market-share trends for the company.
In other recent news, Kroger reported its second-quarter earnings for 2025, surpassing analyst expectations with an adjusted earnings per share (EPS) of $1.04, compared to the forecasted $0.99. Despite a slight revenue miss, the company’s shares showed positive investor sentiment. Kroger’s strategic initiatives and positive sales growth were highlighted as contributing factors to the upbeat outlook. The earnings beat reflects the company’s efforts to maintain growth momentum in a competitive market. Analysts noted the importance of these results in shaping future expectations for Kroger’s financial performance. The company’s latest financial results have drawn attention from various investment firms, which are closely monitoring its progress. These developments are part of Kroger’s ongoing efforts to enhance its market position and deliver value to shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.