Should I buy Kroger stock in 2025?

What is Kroger?

How much is the Kroger stock?

The price of Kroger stock is falling this week. As of now, Kroger shares are trading at USD 66.95, showing a 1.09% decrease over the last 24 hours and a weekly drop of 1.47%.

The company's market capitalisation stands at USD 45.07 billion, with an average three-month trading volume of 7.87 million shares. Kroger’s price-to-earnings ratio is 18.21, its dividend yield is 1.89%, and its stock beta is measured between 0.18 and 0.61, indicating relatively low volatility.

For New Zealand investors, this stability could appeal to those seeking steady exposure within global consumer staples.

Our full analysis on the Kroger stock

In reviewing Kroger Co. (KR), we have synthesised the company’s latest quarterly and annual results, analysed share price behaviour over the past three years, and leveraged multi-factor models that combine financial, technical, and market data—benchmarking against US retail peers. This holistic perspective places recent volatility and fundamental momentum in context, as we consider the broader catalysts driving value for investors. So, why might Kroger stock once again become a strategic entry point into the US consumer defensive sector in 2025?

Recent Performance and Market Context

Kroger’s share price currently stands at $66.95 (as of 29 May 2025), reflecting a +29% gain over the past year and +9.6% over six months. While the last month has seen a pullback of -7.25%, this has followed a multi-month rally that saw KR hit a new 52-week high at $73.63. The recent price retracement can be read as a technical pause rather than structural weakness, as the stock remains well above last year’s low ($49.04).

The sector backdrop is particularly encouraging. US food retail has proven resilient amid shifting consumption patterns, while grocery remains a core expenditure for households. Despite broader market choppiness, the consumer defensive sector has benefited from investors seeking stable cash-flow businesses. Kroger, with its $45 billion market cap, stands tall due to its scale, operational reach, and adaptive strategy.

Several constructive developments reinforce this positive environment:

• Q4 2024 beat on EPS: Adjusted EPS at $1.14, +8% ahead of consensus, signalling robust operational execution.
• Consistent dividend: Yielding nearly 1.9% and a stable quarterly payout ($0.32), underpinning the company’s defensive reputation.
• Brand reputation: In May 2025, Kroger was named one of America’s most trusted companies by the Axios Harris Poll, highlighting enduring consumer loyalty.

Technical Analysis

Recent price action suggests that Kroger is potentially at a new technical inflection point:

• Momentum indicators: The RSI is near neutral (48–50), indicating neither overbought nor oversold conditions—often a prelude to renewed upside.
• MACD: Slightly negative at -0.04, but stabilising—consistent with a consolidation phase from which upward moves often emerge.
• Support and resistance: The $67.50 level acts as strong weekly support, having attracted institutional flows (high volume node, HVN), while $68.76 caps near-term resistance.
• Bullish reversal signals: On May 14th, KR generated a pivot low and has gained +3.4% since, further reinforcing a bottoming scenario.

The technical setup points to a favourable entry window for medium- and long-term investors, particularly given the recent healthy volume and supportive chart structure.

Fundamental Analysis

A deeper look at Kroger’s operations affirms the fundamental resilience:

• Scale and market share: Over 2,700 stores in 35 states, and a network encompassing retail, pharmacy, and fuel centres—critical competitive moats in US grocery.
• 2024 full-year performance: Revenue posted at $147.12 billion, adjusted EPS of $4.47, and significant cash flow generation; annual profitability remains robust.
• Attractive valuation: With a trailing P/E between 18.2 and 18.4, Kroger’s valuation is reasonable—especially compared with sector peers when factoring in defensive characteristics and consistent execution. The consensus analyst target of $70.69 represents further upside, and a +30% move from current levels would imply a potential price of $87.
• Margin innovation: Alternate profit businesses generated $1.35 billion in 2024, reflecting Kroger's growing digital and service-based revenues beyond core grocery—a key margin lever.

Notably, while 2025 guidance projects a minor top-line decline (-1.9%), adjusted operating profit is expected to remain strong ($4.7–4.9 billion). In the context of sector-normal pressures (competition, cost inflation), this outlook underlines operational discipline.

Kroger’s leadership in private-label brands (Big K, Simple Truth, and others), digital innovation, and focus on customer personalisation reinforce structural strength—qualities particularly prized during uncertain economic spells.

Volume and Liquidity

Kroger enjoys substantial market liquidity, with an average three-month daily volume near 7.9 million shares. This sustained activity signals robust institutional participation and market confidence, facilitating easy entry and exit for both retail and professional investors.

The float (approx. 660 million shares) supports an efficient price-discovery process, while the breadth of market participants aids in dynamic valuation. For offshore investors, including those in New Zealand, this depth enhances capital flexibility.

Catalysts and Positive Outlook

Multiple catalysts position Kroger for renewed investor attention:

• Leadership transition: While any executive change brings short-term uncertainty, the company's deep bench and strong middle management (notably Joe Kelley promoted to lead retail divisions) have underpinned operational continuity.
• Digital growth: Q4 digital sales were up 11% and continue to outpace legacy retail peers, with expanding click-and-collect and last-mile fulfilment.
• Alternative profits: Kroger’s high-margin initiatives (media, data analytics, financial services) are not only accretive to earnings, but also diversify the company’s growth profile.
• ESG and reputation: Recognition as a top trusted brand signals robust customer engagement—remaining highly relevant as consumers increasingly scrutinise sustainability and corporate ethics.
• Upcoming earnings: Results expected in late June 2025 may re-ignite bullish sentiment, especially if digital and alternative profit lines continue to outperform.

In addition, macroeconomic drivers—such as stable employment, persistent consumer spending on essentials, and moderating input inflation in the US—support both gross margin expansion and cash-flow predictability.

Investment Strategies

Kroger’s current technical and fundamental setup invites a range of strategic entry approaches:

• Short-term positioning: Traders may consider the current consolidation zone ($66–$68) as a platform for swing entries, aiming to capture the next leg higher into earnings season.
• Medium-term holding: For those seeking a defensive anchor, Kroger’s sustained dividend, high liquidity, and margin-enhancing initiatives offer resilience against broader market swings—potentially rewarding holders as catalysts materialise.
• Long-term accumulation: The prospect of continued innovation in digital, data, and branded products, as well as potential upside toward consensus and bull price targets, reinforces Kroger’s positioning as a core consumer defensive holding.

Those accumulating on technical lows—such as the present test of the $67 support—stand to benefit from asymmetric upside, especially with confirmation from bullish reversal signals and an improving macro backdrop.

Is It the Right Time to Buy Kroger?

In summary, Kroger demonstrates an enviable blend of scale, strategic discipline, and adaptability that anchors its leadership in US food retail. The latest results reinforce a solid earnings profile, with digital and alternative profit channels gaining momentum. Despite the ongoing leadership transition, operational continuity remains high, and the company’s brand remains a trusted household name.

The stock’s recent pullback appears to represent an excellent opportunity, setting up for potential gains into the next earnings cycle and beyond. With attractive valuation, robust liquidity, and multiple business drivers, the fundamentals decisively justify renewed interest from a range of investors. Technical signals and persistent institutional flows further underpin the case for entering or adding exposure at current levels.

With catalysts lining up ahead, Kroger stock may be entering a new bullish phase—ideally positioned for those seeking resilient, well-managed exposure in the US consumer defensive space. For investors in New Zealand and beyond, Kroger offers a rare combination of stability and innovation, set against a backdrop of compelling value. The weeks ahead could well mark a pivotal opportunity to engage with a sector leader on the cusp of its next strategic upswing.

How to buy Kroger stock in New Zealand?

Buying Kroger (KR) shares online is both straightforward and secure for New Zealand investors, thanks to regulated international brokers. You have two main options: purchasing actual Kroger shares (“spot buying”), giving you direct ownership, or trading using Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Both routes are accessible online, each with their specific risks and advantages. To help you choose the most suitable method and broker for your needs, see the broker comparison we provide further down the page.

Spot buying

A cash purchase (spot buying) means you buy actual Kroger shares on the US stock market and become a shareholder. You benefit from any capital gains and are eligible for dividends, net of US withholding tax. New Zealand brokers typically charge a fixed commission per order. For US shares, this often ranges from NZD 3–9 per trade.

Example

If the Kroger share price is USD $66.95 (about NZD $110), with NZD $1,000 (including a typical NZD $5 brokerage fee), you can buy around 9 Kroger shares.

✔️ Gain scenario: If the share price rises by 10% to about NZD $121 per share, your holding would now be worth approximately NZD $1,100.

Result: +NZD $100 gross gain, a 10% return on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Kroger’s share price without actually owning the underlying shares. This method supports leverage, so you can control a larger position with a relatively small amount of capital. The main costs to consider are the spread (the difference between buy/sell prices) and overnight financing fees if you hold your position multiple days.

Example

You open a CFD position on Kroger using NZD $1,000 and 5x leverage. This means you have a market exposure of NZD $5,000.

✔️ Gain scenario: If Kroger's price rises by 8%, your position increases by 8% x 5 = 40%.

Result: +NZD $400 gain on your NZD $1,000 margin (before fees).

Final advice

Before investing, always compare brokers’ fees, access to US markets, order types, and support for NZ investors. Each method suits different profiles: spot buying is suited to long-term investors seeking ownership, while CFDs may appeal to active traders looking for flexibility and leverage. Your decision should reflect your objectives, risk tolerance, and investment horizon. For detailed information on the options available in New Zealand, check the broker comparison further down this page.

Our 7 tips for buying Kroger stock

The latest news about Kroger

Kroger's digital sales surged 11% in Q4, highlighting resilience and innovation in retail operations. This growth in digital channels reflects robust omnichannel strategy execution, which is crucial given the increasing online grocery demand seen in global markets, including New Zealand. For NZ-based investors, Kroger’s capacity to drive high-margin digital sales demonstrates adaptability relevant to international consumer trends and retail digitalization, reinforcing its position as a bellwether in food distribution.

Kroger exceeded earnings expectations by 8% in Q4 2024, reporting an adjusted EPS of $1.14 versus the $1.10 forecast. Despite Q4 revenue marginally missing consensus, solid outperformances on the bottom line underscore managerial efficiency and disciplined cost management. This signals operational strength and sustainable profitability, important for global investors seeking defensive, reliable returns—qualities especially valued by New Zealand portfolios emphasizing yield and downside protection.

Kroger was newly ranked among America’s most trustworthy companies by Axios Harris in May 2025. This high-profile recognition supports the brand’s reputation with both consumers and partners, which is valuable for potential cross-border business, distribution agreements, and prospective partnerships. Such corporate trustworthiness may influence perceptions among New Zealand institutional and retail investors, where governance and social responsibility remain paramount for portfolio allocation.

The company’s 2025 guidance projects an operating profit (FIFO adjusted) between $4.7 and $4.9 billion, in line with steady long-term growth. This guidance communicates confidence in forward profitability despite sector headwinds, giving reassurance to investors concerned by short-term leadership transitions. For New Zealand stakeholders, such stability supports continued confidence in U.S. consumer staples as diversifiers, particularly amid moderate NZD/USD currency volatility.

Consensus analyst recommendations remain positive, with a majority of buy ratings and a price target above current levels. Analyst sentiment points to modest upside, with 20 buy, 9 hold, and just 1 sell recommendation. The average target price sits at $70.69—higher than the last close—supporting the rationale for international investors to monitor potential entry opportunities, especially given Kroger’s consistent dividend policy and lower volatility profile, which may appeal to New Zealand portfolios balancing growth and defensiveness.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.