Jefferies Says Buy Kroger (KR)

In a report released by Jefferies & Co. today, the firm's analysts said that a proprietary survey that they conducted suggests that the name to buy in the supermarket space is Kroger. The analysts wrote that according to the survey, "Kroger's responses were simply bullish, in our opinion, and it remains our favorite name in the space." They also indicated that they believe the margin recovery story at the company remains on track.

Kroger (KR) looks like an interesting name here, particularly for nervous investors who are focusing on capital preservation in the current market environment. The stock is defensive in nature, offers a dividend yield of 1.87%, and has taken a little bit of a haircut recently. Year-to-date, however, the shares have outperformed the broader market. The stock trades at a forward P/E of 10.36, which appears compelling.