Here’s Why The Kroger Co. (KR) is a Defensive Stock to Buy Amid Geopolitical Tensions

Kroger Co. (NYSE: KR ) is one of the best defensive stocks to buy amid geopolitical tensions . On June 3, Jefferies reiterated a Buy rating on Kroger Co. (NYSE:KR) but cut the price target to $80 from $82. The price target cut comes amid concerns that the company is paying the price for US Food channels turning negative in the first quarter.

Kroger's first-quarter volumes worsened as pricing moderated, with inflationary pressure from higher energy prices taking a toll on consumers' purchasing power. According to the research firm, higher gas prices are increasingly pressuring consumer grocery budgets, with comparable sales now expected to come in at the low end of the company's guidance.

Nevertheless, Jefferies remains optimistic about Kroger's long-term outlook, owing to CEO Greg Foran's renewed focus on value and market share growth. In addition, the retailer is making strides with its new e-commerce model, which further strengthens its long-term outlook.

Reports indicate Kroger intends to cut prices on thousands of items as it seeks to regain market share from competitors. It is part of a strategy that focuses on savings from tighter sourcing and simpler operations.

The Kroger Co. (NYSE:KR) is one of the largest food retailers and supermarket operators in the United States. It operates thousands of grocery stores, pharmacies, and fuel centers, while also manufacturing its own food products and running digital delivery and advertising networks.

While we acknowledge the potential of KR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

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