#6 - Kroger (NYSE:KR)
The last two stocks on this list are in the retail/wholesale sector, specifically with ties to household grocery spending. The first pick is The Kroger Co. (NYSE: KR), which is up a whopping 120.8% over the past five years, an average of around 22% in that time.
Analysts can disagree about the past and future direction of inflation. But to consumers, particularly those who do the shopping for their homes, the price increases in groceries haven’t gone away. However, a company like Kroger sells both staples and discretionary items. That is, they’re less concerned about what consumers buy as to the amount they buy.
That may seem cynical to the consumer, but if you’re an investor, that’s music to your ears. That number doesn’t show up as much in the company’s revenue. But it’s evident in Kroger’s earnings, which were up year-over-year in 2023 despite consumers pulling back on discretionary spending.
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
- $54.83
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $59.09 (7.8% Upside)
