Cincinnati-based Kroger Co (NYSE:KR) will announce its first-quarter report before the open Thursday, June 20. Telsey Advisory Group reiterated its "outperform" rating ahead of the event, though the firm anticipates slightly lower-than-expected earnings per share of $1.30 compared to Wall Street's estimates of $1.34.
It's worth noting that Kroger stock finished its last three post-earnings sessions higher, including a 9.9% pop in March. The stock has been slipping since its April 3 two-year peak of $58.33. However, the shares are up 1.2% at $50.96 at last glance today, holding on to an 11.6% year-to-date lead. Plus, the $50 level, which rejected the shares numerous times over the past couple years, could provide support alongside the 160-day moving average.
Over the past two years, the stock has averaged a post-earnings swing of 4.3%, regardless of direction. This time around, the options pits are pricing in a larger move of 7.2%.
Should the stock sway positive, its price action could benefit from its "oversold" status. This is per KR's 14-day relative strength index (RSI) of 24.3, which sits firmly in "oversold" territory.
Meanwhile, options traders are chiming in ahead of the results, with 11,000 calls and 9,610 puts exchanged so far -- already 2.4 times the overall average daily options volume. The June 50 put is the most popular, with new positions opening at the October 50 put.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Wondering what the next stocks will be that hit it big, with solid fundamentals? Click the link below to learn more about how your portfolio could bloom.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
