Community features are only available to paying members.
+ Share this report
The financial media and blogosphere may have turned bullish on The Kroger Co. (KR), but should you follow them?
After all, shouldn’t such extreme optimism in the media raise a flag? Can the company continue to exceed such lofty expectations?
Importance on Extreme Investor Sentiment
There have been academic studies that show investors tend to place too much importance on recent information, also known as psychological anchoring.
During periods of negative news, investors may continue to sell a stock, pushing it below its fair value. Conversely, during periods of positive news, investors may get overly optimistic and push the stock beyond fair value.
This is the core driver behind Contextuall’s sentiment analysis technology–by detecting herd behavior, we help our users identify potential contrarian investing opportunities.
Media Sentiment on The Kroger Co. (KR), Compared to Other Companies in the Grocery Stores Industry
Based on an analysis of recent The Kroger Co. (KR) news articles, about 44.0% of headlines have been classified as Positive, higher than the Grocery Stores industry average of 31.38%.
8.0% of headlines have been classified as Negative (vs. an industry average of 12.20%).
Some might suggest that this extreme bullishness, especially when compared to industry averages, is a warning signal. Are investors too optimistic on the outlook for the stock?
Let us know what you think–the comment section is towards the right.
Visualizing News Sentiment Trends For Other Companies
The following embedded chart can be used to explore sentiment trends for other major companies, where each dot represents a clickable link to a company page (hover over any dot for summary info).
Positive sentiment percentages are plotted on the vertical axis, while negative sentiment percentages are plotted on the horizontal axis.
In other words, companies in the top left have more optimistic news sentiment than companies in the bottom right.