Jim Cramer’s Top 10 Must-Watch Stocks for Savvy Investors

6. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Investors: 46

Jim Cramer comments on The Kroger Co. (NYSE:KR)’s forthcoming report and its pursuit of acquiring Albertsons. He anticipates that The Kroger Co. (NYSE:KR) will argue that the merger is crucial and not monopolistic because they have few overlapping stores and plan to sell any that do overlap to well-capitalized competitors. However, Cramer is skeptical about whether these arguments will persuade the Federal Trade Commission, which seems set on blocking the deal.

“Kroger reports, the giant grocery chain, and I think it will once again talk about how much it needs to close the deal to buy Albertsons, and why there’s nothing monopolistic about the merger. They don’t have too many overlapping stores, and they plan to divest the ones that do overlap to well-financed competitors. I’m just not sure any of that matters because the Federal Trade Commission seems determined to block the deal no matter what. Which means Kroger stock will have to stand or fall on its own merits. Fortunately, its own merits are pretty darn good.”

The Kroger Co. (NYSE:KR) is an attractive investment due to its steady earnings and strong financial performance. For Q2 2024, analysts expect The Kroger Co. (NYSE:KR) to report earnings of $0.913 per share and revenue of about $34.12 billion. Despite a slight drop in sales, The Kroger Co. (NYSE:KR) remains profitable thanks to its focus on grocery operations and its investments in digital technology and customer loyalty programs.

Additionally, a potential merger with Albertsons could provide significant benefits, such as increased market share and operational efficiencies, which would strengthen The Kroger Co. (NYSE:KR)’s competitive position and growth outlook. This mix of reliable current performance and promising future opportunities makes The Kroger Co. (NYSE:KR) a compelling choice for investors seeking stability and growth.