Cincinnati, Ohio-based The Kroger Co. (KR) operates as a food and drug retailer. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. With a market cap of $48.2 billion, Kroger operates as one of the world's largest food retailers.

Shares of the grocery retailer have notably outpaced the broader market over the past 52 weeks. KR has soared 30.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.6%. Moreover, shares of KR are up 18.4% on a YTD basis, outpacing SPX’s 4.3% decline during the same time frame.

Looking closer, Kroger has also outperformed the industry-specific VanEck Retail ETF's (RTH) 13.6% surge over the past 52 weeks and 2.5% return on a YTD basis.

The recent surge in Kroger stock prices can partly be attributed to the flow of funds from discretionary and cyclical stocks to consumer staples, fueled by the increased macro uncertainties. Meanwhile, Kroger’s stock gained 2% after the release of its mixed Q4 results on Mar. 6. The company’s adjusted sales for the quarter increased 2.6% year-over-year to $34.3 billion, which missed the Street’s expectations by a thin margin. Meanwhile, its adjusted EPS remained flat at $1.14, which exceeded the consensus estimates by 1.8%.

On a more positive note, Kroger expects its fiscal 2025 identical sales without fuel to increase 2% to 3% and its adjusted EPS to range between $4.60 to $4.80 representing a 5.1% year-over-year growth at midpoint.

Meanwhile, for the current fiscal year, analysts expect KR's adjusted EPS to increase 6% year-over-year to $4.74. Moreover, the company has a solid earnings surprise history. It beat or met the consensus estimates in each of the last four quarters.

Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.”

This configuration is slightly less bullish than two months ago, when none of the analysts gave a “Strong Sell” recommendation.

On Apr. 3, Guggenheim analyst John Heinbockel raised KR's price target to $73 while maintaining a “Buy” rating.

As of writing, Kroger is trading above the mean price target of $68.45, while the Street-high target of $82 suggests a 13.3% upside potential.