Hedgeye CEO Keith McCullough is adding Kroger (KR) to the long side of Investing Ideas. Below is a brief note.
I can't remember the last time I was net LONG (more longs than shorts in RTA), but that's what the signal says I should do, so I'm rolling with it...for now.
Krogering? KR is the new long idea in a Sector Style I like here (Consumer Staples) and its on sale -3.2% here today.
Here's a summary excerpt from Consumer Staples analysts Howard Penney and Daniel Biolsi's Institutional Research notes:
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More than half of Americans’ spending on food is outside the home. In 2010 coming out of the last recession, Americans spent more on food away from home for the first time. Through the combination of COVID-19 restrictions and the likely downturn, we are in the share of spending on food at home will reverse years of share loss. The restrictions on eating at restaurants and leaving your home have encouraged more Americans to cook than Julia Child could ever dream. Perhaps the biggest concern for the grocery industry before the coronavirus was the encroachment of Amazon and food delivery. With the long delays for orders and spiraling costs, the challengers have shown themselves not to be able to handle significant share gains. We think the tide turning will extend beyond the current quarter as consensus expects. |
Buying the damn dip,
KM
