Kellogg (K) closed the most recent trading day at $73.61, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.15%.
Coming into today, shares of the maker of Frosted Flakes, Pop Tarts and Eggo waffles had lost 4.19% in the past month. In that same time, the Consumer Staples sector lost 7.2%, while the S&P 500 lost 10.24%.
Kellogg will be looking to display strength as it nears its next earnings release. On that day, Kellogg is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 11.93%. Meanwhile, our latest consensus estimate is calling for revenue of $3.76 billion, up 3.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $14.86 billion. These totals would mark changes of -0.96% and +4.78%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Kellogg. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Kellogg currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kellogg has a Forward P/E ratio of 17.68 right now. Its industry sports an average Forward P/E of 17.97, so we one might conclude that Kellogg is trading at a discount comparatively.
We can also see that K currently has a PEG ratio of 4.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.66 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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