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Let's take a look now at some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg's Judy Lagree, and we're looking forward to some more earnings this week. We're going to hear from Kroger Thursday. Look at it. What Bloomberg Intelligence has to say about the grocery chain expectations here don't look too great, Judy.
That's right. Bloomberg Intelligence analysts are seeing that Kroger is set for its weakest sales and profit growth of the year. So I think for them it's really like the focus on that is the same source sales growth, which is expected to be the lowest since August twenty twenty four. But Nathan, I have a question for you. Yeah, and talk to me a little bit about how you think about grocery shopping. Do you prefer to go in person? Do you prefer to go through an app to get your groceries delivery?
I go to the grocery store almost every day just to fill up on like the one recipe that I have to do every day. So yeah, I'm an in store person.
Kind of okay.
Interesting, you know, I am here in Manhattan and I miss going to the grocery store in person. I am a transplant, and so I've had to adjust to you getting delivery over going into the grocery store. But it is an experience and I do like and miss that experience greatly. Yeah.
Well, I mean these grocery stores, they still get the business, you know, whether whether they're getting it delivered or not. Right, But I mean, is it just same store sales alone that are potentially going to be dragging Kroger's results down?
I mean, truly, for Kroger, it's a story of trying to catch up to where the business is. And so Kroger primarily is trying to spur growth in their grocery
business through their e commerce fulfillment. So that's through partnerships with Instacart, the door Dash, with Uber Eats, and right now they're really seeing that basically a lot of their business is coming from people who are ordering delivery on an increasing basis, and so in tandem with that, there is for Croker a lot of thought into price cuts and what that looks like for them as they compete with other grocery store providers who deliver like Amazon, like Walmart,
And so one thing I was looking at was City researchers really noting how vocal the CEO, Greg Foreman, what foregn was in the press about price cuts on the day that Walmart reported their earnings, and City ana Is called that quote strange timing and not coincidental, which I liked, you know, I thought that was really interesting and good language to use. But they certainly perceived the talk about price cuts as quote poking the bear.
Seriously, when you think about, you know, just how expensive everything is right now. It's very top of mind for anybody, whether they're going into the store or getting it by delivery. But before we hear from Kroger on Thursday, we're going to get some more earnings from Carmas on Wednesday. How's the car market looking right now.
Judy, I mean, look, I think that there's a lot going on, and the car market is a reflection of what we're seeing in the economy. I think, really Carmas is an interesting company stock earning result to watch because used car sales are certainly on top of mind for a lot of us in terms of it's read on the consumer, it's read on affordability for used cars, auto credit, whether the retail turnaround is actually working. I mean, there's
so many roads that lead to use car purchasing. So at least for Carmacks, what we're looking at in terms of the street and analysts, they're looking at and adjusted earnings for share of about ninety seven cents, which is down thirty percent from this time last year, and revenue was also expected to be slightly lower year over year. And so I think that is really sort of reflective of where we're seeing used car sales just as an economy,
as a country, there's just strain there. And so as a result, investors aren't really looking for blowout growth story here. They're looking for evidence that the worst of this storm in terms of really wavering and dropping used car interest in sales, is starting to stabilize and sort of steady out. As far as CarMax.
And well more stock, We're going to watch maybe for the next few weeks here with the World Cup on is draft kings. Do you think we're going to see investors get a payoff from the tournament Judy.
Oh goodness, this is a really this is the crux of the question here. I think it depends on a number of things. It depends on whether the World Cup will bring in more betters, more dollars waged, or more repeat customers, and that is something that in my view,
remains to be seen. I think we'll have to sort of understand what the handle or the total amount that looks like as the World Cup gets underway, and whether or not Draft Kings can turn this big event into new users without spending too much on promotions, which I
think is really they're set up for that. Analyst Ian Moore at Bernstein really pointed out Draft Kings as being the clearest prediction market sports betting winner of the World Cup, and I think those are really really strong words, and for that, I think it's certainly something to watch from a perspective of stock movement as it pertains to the perception of the amount of betters who are jumping in or even increasing their wagers as a result of the World Cup.
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