2024-05-06 17:16:49 ET
Summary
- The Kroger Co. stock has broken through the $50 resistance level and is now hovering around a 52-week-high.
- Technical signs indicate that the stock is poised to break the next resistance level of $60 in the near term.
- Given the fundamental catalysts afoot, we are optimistic that the challenge will be successful.
- Besides plenty of long-term catalysts, the pending Albertsons Companies merger is a key catalyst in the near term.
KR stock has overtaken the $50 resistance level
We are long-term bulls on The Kroger Co. (NYSE: KR ). The last time we wrote on the stock was in August 2022, as seen in the screenshot below. In that article, we compared Kroger with Walmart ( WMT ) to argue for its following long-term competitive advantage:
… the key reasons that made us favor Kroger include its more compressed valuation, higher total shareholder yields, and better growth potential. Kroger's automatic fulfillment centers, combined with loyalty programs, provide a strong catalyst to fuel growth in the long run.
Read the full article on Seeking Alpha
For further details see:
Kroger: Albertsons Merger Creates Highly Skewed Return Potential (Technical Analysis)