Kroger has been a major beneficiary of the pandemic as more people continue to cook and eat at home. In their most recent quarter, Kroger reported sales ex-fuel grew 13.9% year-over-year and repeated 2020 EPS guidance of $3.20-$3.30. Their only headwind has been fuel, which has been hurt by low prices for oil and a decrease in demand as people have cut back on driving. Despite the positive trends through the year, Kroger stock is still cheap, trading at around a 10 times P/E ratio. Management has invested heavily in digital sales which doubled in the quarter. In September, Kroger's board authorized a $1 billion share repurchase program.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2020 market commentary.
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