Kraft Heinz (KHC) closed at $43.57 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's 0.12% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 14.52% over the past month, lagging the Consumer Staples sector's loss of 7.3% and the S&P 500's loss of 6.96% in that time.
KHC will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. In that report, analysts expect KHC to post earnings of $0.97 per share. This would mark year-over-year growth of 7.78%. Our most recent consensus estimate is calling for quarterly revenue of $6.97 billion, up 1.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.64 per share and revenue of $26.34 billion. These totals would mark changes of +2.54% and +0.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KHC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.37% lower. KHC is currently a Zacks Rank #3 (Hold).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 12.04. Its industry sports an average Forward P/E of 16.18, so we one might conclude that KHC is trading at a discount comparatively.
Meanwhile, KHC's PEG ratio is currently 1.96. 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 2.05 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.