15 Best Large-Cap Value Stocks to Buy as the Recession Hits

10. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 60

Forward P/E as of April 15: ~14.4x

The Kroger Co. (NYSE:KR) operates as a food and drug retailer. Guggenheim maintained a “Buy” rating on the company’s stock and raised the price objective to $73 from $71. The firm’s analysis demonstrates that the company’s accelerating operating momentum, resulting from the ESI network re-entry, the growth of Media business, and the expansion of KR Delivery, is expected to support the stock. On February 5, Kroger Health, the healthcare division of The Kroger Co. (NYSE:KR) and its Family of Pharmacies, announced a new agreement with Express Scripts, the pharmacy benefit services business of Evernorth. Notably, the new agreement offers access to prescription medications and health services at the Kroger Family of Pharmacies for Express Scripts customers.

Elsewhere, analyst Robert Ohmes from Bank of America Securities reiterated a “Buy” rating on the company’s stock. The analyst’s rating is backed by a combination of factors demonstrating the company’s healthy financial performance and strategic positioning. Notably, The Kroger Co. (NYSE:KR)’s Q4 2024 adjusted EPS exceeded expectations. The analyst has a favourable outlook for the company’s future earnings, aligning with The Kroger Co. (NYSE:KR)’s guidance. The expected growth in alternative profit streams, like Retail Media, and the continued emphasis on digital sales and cost savings aid the long-term margin potential, says Ohmes. In Q4 2024, the company posted an adjusted EPS of $1.14.