Earnings Play: Kroger
Jason Lubin June 17, 2020 10:55 AM
Kroger's 1Q earnings are expected on Thursday. Here is what to look out for.
On Thursday, before market, Kroger (KR) is expected to report first quarter EPS of $1.00 compared to $0.72 a year ago on revenue of approximately $40.3B vs. $37.3B last year. The company operates a chain of superstores and corner stores, and its current analyst consensus rating is 11 buys, 12 holds and 1 sells, according to Bloomberg.
Looking at a weekly chart, Kroger's stock price has been holding an uptrend using the 20-week moving average as loose support since late-July, early-August of 2019. The 50-week moving average just crossed above the 200-week moving average, which is known as a Golden Cross. The fact that this Golden Cross is occurring on a weekly chart is very bullish compared to a Golden Cross on a daily chart.
Source: GAIN Capital, TradingView
Looking at a daily chart, Kroger's stock price has been holding within a symmetrical triangle pattern since mid-March. Given the weekly chart, price is expected to breakout to the upside of the symmetrical triangle pattern, continuing the bullish trend. Even if price breaks below the lower trend line it could still have a chance to hold at $31.00 support, as it is also a major level on the weekly chart. Price is expected to retest $34.50 and make its way back to $36.50. If price breaks below the lower trend line and cuts through the $31.00 support we could see a fall to $29.00.
Source: GAIN Capital, TradingView
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