The Kroger Co. (KR) is a leading American retail firm headquartered in Cincinnati, Ohio, operating within the retail sector, primarily in the supermarket and grocery store industry. Currently, its market capitalization stands at $47.4 billion, securing its position as one of the largest grocery retailers in the U.S. 

Founded in 1883, the company now oversees a vast network of supermarkets, warehouse-style “price-impact” stores, fuel centers, pharmacies, in-store clinics, manufacturing plants, and jewelry outlets. Kroger is also widely recognized for its private-label brands such as Big K and Simple Truth, which account for a significant portion of its sales, leveraging an integrated supply chain with in-house manufacturing and distribution facilities.

Kroger has delivered strong price performance in 2025, climbing 17.3% year-to-date (YTD) and around 33.1% over the past 52 weeks, which notably outpaced the S&P 500 Index’s ($SPX) return of 7.1% and 21.5%, respectively. 

On the other hand, the Consumer Staples Select Sector SPDR Fund (XLP) has posted more muted gains of 2.4% on a YTD basis and about 3.6% for the past year. Kroger has comfortably outperformed both the broader market and its sector.

Kroger’s outperformance stems from several key catalysts, including Kroger’s Q1 2025 results, posted on June 20. Identical sales excluding fuel rose 3.2% and adjusted EPS came in at $1.49, beating analyst estimates and prompting the firm to raise full-year identical sales growth guidance to a 2.25% to 3.25%  range. The stock spiked by 9.8% on the day of earnings release, driven by renewed confidence in its strategic direction. 

For the current fiscal year, ending in January 2026, analysts expect Kroger to report EPS growth of 6.5% YoY to $4.76, on a diluted basis. The company has a stellar track record of consistently surpassing projections. It has topped consensus EPS estimates in each of the last four quarters.

Among the 20 analysts covering KR stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” and nine “Hold” ratings. 

The current configuration has remained largely consistent over the past few months. But compared to three months ago, it reflects a slightly improved sentiment, with no “Strong Sell” rating now, indicating a reduced bearish sentiment.

On July 21, Barclays initiated coverage on KR with an “Equalweight” rating and a $90 price target, implying an upside potential of 25.4%. The brokerage firm cited expected improvements in identical store sales through 2025 to 2026, driven by competitor closures, streamlined promotions, and price investments. The firm also highlighted Kroger’s strong track record of delivering consistent shareholder returns.

Meanwhile, the mean price target of $76.84 is not quite as ambitious, but it still represents a premium of 7.1% to KR’s current price.