Kroger: Defensive leader with growth potential

Kroger $KR one of the largest retail chains in the US, is becoming an attractive option for defensive investors thanks to its stable business model and earnings growth. Despite higher EBITDA volatility (32%), it provides predictable earnings through sales of food and drug products - a sector that is less sensitive to economic cycles.

A defensive sector with earnings growth:

Expected earnings per share growth:

- +5% in 2025

- +8% in 2026

Strong presence in the food and pharmaceuticals segment - demand is stable even during economic downturns

Reason for significance: Food retail is recession-proof because people buy basic goods regardless of economic conditions.

Stocks outperform the market:

+19% over the past six months

+11% year-to-date

Outperformed the S&P 500 Index

Reason for significance: rising stock price signals investor confidence in the long-term stability of $KR.

Strong analyst support

More than half of analysts (13 of 25) recommend a "buy" or "strong buy"

Goldman Sachs expects continued revenue and earnings growth

Reason for significance: when big analysts support a stock, it often means lower risk and a higher probability of solid earnings.

Investment view: Kroger as a stable growth stock:

A resilient retail business - food and drug sales are stable even in a crisis

Profitability growth - expectations of +5% (2025) and +8% (2026)

Support from analysts and above average market performance

$KR offers a combination of stability, growth and defensiveness, making it an attractive option for investors seeking stable returns in an uncertain market environment.