#1 - Kroger (NYSE:KR)
First up on this list of stagflation stocks is Kroger (NYSE:KR). Whenever analysts “strip out” food and gas from inflation numbers it makes me laugh. It’s not that I believe they’re fudging the numbers, but food and gas are where consumers can’t avoid inflation. And the thing about food prices is once they go up, they have a tendency to stay up. That’s what puts Kroger on this list.
The grocery company is, to date, successfully passing along higher grocery costs to its customers. And that is one reason why the company is seeing year-over-year (YOY) earnings per share (EPS) growth of approximately 10% in each of its last several quarters. Investors will find out in the next quarter or two if the company will increase its dividend. However, with the sizable amount of free cash flow (FCF) the company is generating, the dividend will likely be increasing for the 17th consecutive year.
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
- $61.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $65.43 (5.8% Upside)
