Cincinnati-based grocery giant Kroger (KR) is gearing up for its first-quarter earnings report, due out before the open Thursday, June 20. A look at KR’s history of post-earnings reactions during the past two years shows a mostly positive response, with five of these next-day sessions higher, including a 9.9% pop in March. The security averaged a post-earnings swing of 4.2%, regardless of direction. This time around, the options market is pricing in a higher move of 6.3%.
Kroger stock could use another positive post-earnings reaction. The equity has slid 12.8% this quarter, pulling back to its year-over-year breakeven level, now up just 5.5% over the last 12 months. Last seen down 0.7% at $49.82, today’s slide is being captured by the security’s 160-day moving average. And despite being on track for its fourth-straight daily loss, the equity is still up 9% since the start of the year.
Daily Chart of Kroger Stock YOY with 160-Day Moving Average
Over the last 10 weeks, Kroger stock has seen a relatively strong bearish sentiment in the options pits. This is per KR’s 50-day put/call volume ratio of 1.26 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 78% of readings from the past year.
What’s more, the majority of analysts are hesitant towards the stock. Of the 17 covering brokerages, nine recommend a tepid “hold” or worse.
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