Today we're going to take a look at the well-established The Kroger Co (NYSE:KR). The company's stock received a lot of attention from a substantial price movement on the NYSE in the over the last few months, increasing to $24.63 at one point, and dropping to the lows of $20.15. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether KR's current trading price of $20.15 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at KR’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Kroger

Is KR still cheap?

Good news, investors! KR is still a bargain right now. My valuation model shows that the stock’s value should be $31.23 but it is currently trading at $20.15 on the share market, meaning that there is still an opportunity to buy now. KR’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of KR look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at KR future expectations. With profit expected to grow by a double-digit 11.68% over the next couple of years, the outlook is positive for KR. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since KR is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KR for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KR. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Kroger. You can find everything you need to know about KR in the latest infographic research report. If you are no longer interested in Kroger, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.