10 Best Grocery Stocks To Invest In Now

5. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 46

The Kroger Co. (NYSE:KR), commonly known as Kroger, is a major American retail corporation, operating more than 2,700 supermarkets and multi-department stores across 35 states, making it one of the world’s largest food retailers.

The Kroger Co. (NYSE:KR) has reported modest growth in its second-quarter earnings for 2024, with a 1.2% increase in identical sales excluding fuel, an 11% rise in digital sales, and a 17% growth in delivery solutions, although adjusted earnings per share fell by 3% to $0.93. Moreover, the company has successfully completed the sale of its specialty pharmacy business to Elevance Health, a move that is not anticipated to impact its financial guidance for 2024. The Kroger Co. (NYSE:KR) has also enhanced its Boost by Kroger Plus membership program by including Disney streaming services as a new benefit.

Following its second-quarter performance, BMO Capital reiterated a positive outlook on The Kroger Co. (NYSE:KR) in September, maintaining an Outperform rating and a price target of $60. The firm believes that Kroger’s positive trends have continued into the third quarter, despite challenges such as consumer trade-down behavior and financial pressures on cost-conscious shoppers.