The Kroger Co. (NYSE:KR) Sees RSI Reach 48.72

Technical traders often make a point of keeping an eye on the ATR or Average True Range of a particular equity. Currently, The Kroger Co. (NYSE:KR) has a 14-day ATR of 0.53. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.

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The Williams Percent Range or Williams %R is another technical indicator worth checking out. The Kroger Co. (NYSE:KR) currently has a 14 day Williams %R of -49.67. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.

The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for The Kroger Co. (NYSE:KR) is 22.46. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Traders may be leaning on technical stock analysis to help with investing decisions. The Kroger Co. (NYSE:KR) currently has a 14-day Commodity Channel Index (CCI) of 26.37. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

Traders are paying renewed attention to shares of The Kroger Co. (NYSE:KR). The current 14-day RSI is presently sitting at 48.72, the 7-day is 46.32, and the 3-day is 34.02. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

Checking on the valuation of The Kroger Co. (NYSE:KR) shares, we can focus on several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio. This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued. A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. The Kroger Co. currently has a PEG ratio of 2.5.

Let’s take a gander at how the stock has been performing recently.  Over the past 12 months, The Kroger Co. (NYSE:KR)’s stock was -10.40%.  Over the last week of the month, it was -1.16%, 10.79% over the last quarter, and  -4.27% for the past six months. 

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 5.72% for next year and have a $27.09 one year price target on the stock.   The stock recently traded at $24.64.

Recently, the equity stands -22.95% away from the 52-week high and 19.03% from the 52-week low. The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 48.65 for The Kroger Co. (NYSE:KR).
Shares of The Kroger Co. (NYSE:KR) have been experiencing an accelerated earnings and sales growth over the past 5 years. Over that time frame the firm has seen earnings growth of 21.00% and sales growth of 4.30%.

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