Kroger upgraded to Buy after earnings dip, with strong 2026 outlook and growth plans.

Kroger Co. was upgraded to Buy following a post-earnings stock drop, as its valuation now offers a solid margin of safety. The company maintains its 2026 guidance, expecting 1–2% identical sales growth, $5.10–$5.30 earnings per share, and $2.7B–$2.9B free cash flow despite macroeconomic challenges. The new CEO aims to boost growth through price cuts and a mixed digital and physical store expansion. The intrinsic value is estimated to be above the current market price, indicating an attractive risk-reward profile for investors.