Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Mish’s Daily: Analyzing Two Stocks in the Grocery Space

by October 12, 2022
October 12, 2022
Mish’s Daily: Analyzing Two Stocks in the Grocery Space

With the potential of a full recession looming in the coming quarters, investors are looking for defensive plays, such as dividend-paying stocks and businesses more resilient in economic downturns. 

Looking at Tuesday’s market close, XRT, a.k.a. Granny Retail, was up 1.1%, along with Costco (1.22%), Walmart (2.59%), Kroger (3.52%), and Target (0.91%). Yet the S&P 500 closed lower by 0.54%, while the NASDAQ fell by 1.20%.

We know that during tough times, people need reliable products and services they can count on. Our two featured stocks today may benefit by offering high-demand goods even when the economy is struggling.

Grocery e-commerce is a fast-growing category still, and most investors focus on Amazon (AMZN), yet Kroger (KR) and Walmart (WMT) are also leaders. Both companies have shown resilience and are expected to continue recovering and performing well even as the economy weakens.

Click this link now to read our latest analysis of two recession-proof businesses and learn actionable trading levels for ETFs.

Walmart, the global discount leader in retail and online shopping, and Kroger, a diversified grocer working to capture more offline and online market share, are looking to expand their reach in this challenging environment.

Walmart is still growing store revenue, grocery sales, and e-commerce. The company has made several acquisitions to improve customer experience. The most notable is the e-commerce platform Flipkart, an Indian e-commerce business platform that rivals Alibaba. Walmart+ is also a growing force, with the addition of Paramount+ streaming, and Walmart+ members spend almost double in comparison to regular customers. Walmart has seen low but stable growth in consumer sales, which stands out from other sectors of the economy.

Looking at Kroger, which is based in Cincinnati and is the second-largest grocer by revenue, the company operates supermarkets under various banners, including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, Mariano’s, Pick n Save, QFC, Ralphs and Smith’s. Kroger is also the largest floral retailer in the US and the fifth-largest pharmacy. Kroger manufactures and sells private-label goods, so it is positioned to benefit from rising food costs.

Kroger also operates convenience stores and fine jewelry stores under names like Fred Meyer Jewelers and Littman Jewelers.

Kroger and Walmart both have billion-dollar repurchase stock plans, which serve as additional catalysts for growth, and each offers an attractive dividend.

Despite concerns about inflation, inventory, and supply chain disruptions, Walmart and Kroger reported relatively strong earnings in their most recent quarters. Walmart and Kroger still have potential business risks, mainly due to Granny Retail’s uncertain resilience, which could be impacted negatively in a lengthy recession. However, goods such as food and personal products that consumers rely on daily, tend to generate solid profits for select retail chains even in weak economic conditions.

Do you want to know how to trade the stock market during a recession? You don’t want to be caught in a market crash – or miss out on potential profits. Subscribe to Mish’s Daily for market insights.

You can also sign up for a free consultation with Rob Quinn, our Chief Strategy Consultant, by clicking here to learn more about Mish’s top-rated risk management trading service.

Mish’s Upcoming Seminars

The Money Show: Join me and many wonderful speakers at the Money Show in Orlando, beginning October 30th running thru November 1st; spend Halloween with us!

Trader’s Summit: Mish speaks with Helene Meisler on October 23rd at 12pm ET. Learn more here.

“I grew my money tree and so can you!” – Mish SchneiderGet your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Read Mish’s latest article for CMC Markets, titled “Are We Due Another Supercycle in Miners and Precious Metals?“.

Mish talks hedges and stock picks under the current environment in this appearance on BNN Bloomberg.

ETF Summary

S&P 500 (SPY): 355 support, 360 resistance.Russell 2000 (IWM): 165 support, 171 resistance.Dow (DIA): 290 support, 296 resistance.Nasdaq (QQQ): 260 support, 265 resistance.KRE (Regional Banks): 58 is support, 61 resistance.SMH (Semiconductors): 174 support, 180 resistance.IYT (Transportation): 196 support, 203 resistance.IBB (Biotechnology): 116.59 is now support, 120 resistance.XRT (Retail): 57 is now support, 60 resistance.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

Wade Dawson

MarketGauge.com

Portfolio Manager

0
FacebookTwitterGoogle +Pinterest
previous post
Amazon Accused of Selling ‘Suicide Kits’ to Teenagers in New Lawsuit
next post
Here We Go: Biden Covid Czar Says Pandemic Not Over (VIDEO)

You may also like

Sector Spotlight: Downside Risk Beats Upside Potential

August 2, 2022

Sector Spotlight: Sensitive Sectors Showing Strength

May 9, 2023

How to Spot a Golden Mining Opportunity Using...

September 6, 2024

It’s Homework Time: Improving Stocks In Improving Industry...

October 16, 2022

Stocks Plunge with Key Earnings on Tap

April 30, 2024

Markets Nosedive Amid Recession Fears

September 6, 2024

VIX and UVXY Near Buy Points

November 19, 2022

Using Nasdaq 100 Specific Breadth to Measure Risk...

July 15, 2024

The SCTR Report: Workday Rises on Strong Earnings...

August 23, 2024

S&P 7000 By End of 2024?

March 27, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House Democrats call on Rubio to allow injured children from Gaza into US following visa halt

      August 27, 2025
    • SkyWater pitches itself as all-American firm as Trump mulls more equity deals following Intel deal

      August 27, 2025
    • 600,000 Chinese Students Would Be a Windfall for the United States

      August 26, 2025
    • EPA urged by state AGs to axe funds for ‘radical’ climate project accused of training judges

      August 26, 2025
    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 26, 2025

    Categories

    • Business (8,886)
    • Investing (2,242)
    • Politics (16,495)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved