Kroger Co. (The) : Breakout ahead
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$38.2 | $40.5 | $37.49 | +6.02% |
The firm is a five stars company according to our own rating system. That emphasize its attractive valuation, its great business predictability and the earning quality. The P/E ratio for 2016 estimates earning is below the industry average. Furthermore, financial forecast are encouraging as net income is expected to rise about 8%. In addition, the consensus is mainly buyer, and has set an average target price that is displaying a 5.5% upward potential
Graphically, the stock keeps an upward trend on all time scales and is evolving within a bullish channel. The movement was temporarily called into question by the USD 38.6 resistance. Well oriented moving average show the security’s strength and give credit to a further surge in prices.
Consequently, investors may open a long position in the event of a daily closing above the long term resistance. Once initiated the position should be protected by a stop loss at USD 37.5 and a main target price could be USD 40.5.