American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Billionaires, including Warren Buffett, invest in Kroger stock: should you follow suit?

by admin September 13, 2024
September 13, 2024
Billionaires, including Warren Buffett, invest in Kroger stock: should you follow suit?

As economic uncertainty looms, Kroger Co (NYSE: KR) is emerging as a potential haven for investors.

The grocery giant, known for its strong consumer staples portfolio, offers a solid dividend yield of 2.34%, positioning it well to deliver stable returns during tough economic times.

Notably, billionaires such as Warren Buffett, alongside hedge funds like Bridgewater Associates and Two Sigma Investments, are betting on Kroger, signaling confidence in the stock.

Why Warren Buffett holds Kroger stock

Kroger’s appeal as a recession-resistant stock is underscored by the fact that it’s part of Warren Buffett’s portfolio.

Buffett likely values Kroger for its focus on high-income consumers, a demographic typically more resilient during economic downturns.

Unlike shoppers who might drive long distances for Costco discounts, Kroger’s customers often prioritize convenience and a premium shopping experience, making them less price-sensitive in tough times.

While Kroger was late to the eCommerce game, its recent investments in this area are paying off, driving sales growth.

Wall Street analysts rate KR stock as “overweight,” signaling optimism for future performance.

Kroger’s Q2 earnings

Despite facing regulatory hurdles in its proposed $24.5 billion acquisition of Albertsons, Kroger remains committed to the merger, which CEO Rodney McMullen believes will lower prices, secure jobs, and increase access to fresh, affordable food.

In its second-quarter earnings report, Kroger posted $33.91 billion in sales, slightly below the forecasted $34.08 billion.

However, it exceeded earnings expectations, reporting adjusted earnings of 93 cents per share compared to the 91-cent consensus estimate.

Kroger stock: a value play

Kroger’s stock is not only attractive for its stable returns but also for its relative affordability.

With a price-to-earnings (P/E) ratio of 18.64, Kroger is cheaper compared to Walmart’s P/E of 41.21 and Costco’s 56.25, making it an appealing option for value-focused investors.

While Kroger may not generate overnight wealth, it remains a strong, profitable brand with ample cash reserves, offering investors a solid opportunity for stable returns in an uncertain economy.

The post Billionaires, including Warren Buffett, invest in Kroger stock: should you follow suit? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Brigitte Macron wins defamation lawsuit against conspiracy theorists for false transgender claims
next post
SpaceX’s Polaris Dawn crew breaks ground with first private spacewalk and spacesuit evaluation

Related Posts

Hims & Hers Health says it will offer...

May 24, 2024

After Microsoft, these two stocks could be the...

March 3, 2025

Tesla’s European sales halve in April amid growing...

May 27, 2025

Starbucks (SBUX) stock dips on Q2 miss: analysts...

April 30, 2025

Sensex and Nifty rise, tracking Asian market cues;...

December 3, 2024

Rivian secures up to $5 billion from Volkswagen;...

June 28, 2024

Warner Bros. Discovery’s NBA rights offer could put...

May 25, 2024

NHS’ ‘missing billions’: England’s healthcare is in emergency...

September 13, 2024

Top 2 US stocks to buy for exposure...

May 27, 2025

How Shopify is helping merchants prepare for Trump...

May 28, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved