4-Star Stocks Poised to Pop: Kroger

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, supermarket chain Kroger (NYS: KR) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Kroger's business and see what CAPS investors are saying about the stock right now.

Kroger facts

Headquarters (founded)

Cincinnati (1883)

Market Cap

$12.4 billion

Industry

Food retail

Trailing-12-Month Revenue

$90.4 billion

Management

Chairman/CEO David Dillon
President/COO W. Rodney McMullen

Return on Equity (average, past 3 years)

12.1%

Cash/Debt

$188.0 million / $8.2 billion

Dividend Yield

2.1%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 676 members who have rated Kroger believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, ElCid16, tapped Kroger as a tasty income opportunity:

The company appears to be about as solid as a non-[Whole Foods Market] grocer can be. Rev and Gross Profit have risen nicely over the past several years. ... Even though the dividend has grown [more than 50%] since 2007, there is still plenty of room for dividend growth. The company has been aggressively buying back shares, but based on a back of the envelope calculation, they've averaged a price of $25 or so, which isn't horrible.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Kroger may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Costco, SUPERVALU, and Whole Foods. Motley Fool newsletter services have recommended buying shares of Costco, SUPERVALU, and Whole Foods, as well as creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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