Skyrocketing egg prices? No problem! Just pass the extra cost onto the consumer.
New tariffs on avocados from Mexico? No problem! Just pass the extra cost onto the consumer.
You get the point... These companies have tremendous power, and the market loves it.
Kroger $KR is one of the largest grocery store chains in the United States, and they've been rewarded for 13 out of its last 17 earnings reports.
This is as good as it gets.
The company reported mixed results on Thursday but rallied amidst a broad market selloff. It was very impressive.
Let's talk about what happened 👇
Here are KR's earnings stats:
*click the image to enlarge it
As you can see, Kroger missed its top-line expectations but beat the bottom line. The market rewarded it with a 2% rally and a 3.86 earnings reaction.
It was fabulous.
Now, let's dig into the data and talk about the technical setup 👇
KR is consistently rewarded for reporting earnings:
Kroger grew its total sales by 1.5% in 2024, but the real growth comes from its media business, which grew 17% last year.
Like Google, Facebook, and others sell its consumer data for advertisements and personalized marketing campaigns, so does Kroger. It has been a tremendous success for them.
In addition, they introduced more than 900 new "Our Brand" items, which have helped improve the profit margin. The market loves how they're vertically integrating.
The stock is flipping a shelf of former highs into support and looks poised to make new all-time highs.
If KR is above 62.50, the path of least resistance is higher for the foreseeable future.
