Kraft Heinz (KHC) Dips More Than Broader Markets: What You Should Know
Kraft Heinz (KHC) closed at $31.46 in the latest trading session, marking a -1.33% move from the prior day. This change lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.45%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 2.69% in the past month. In that same time, the Consumer Staples sector gained 1.29%, while the S&P 500 lost 1.59%.
Wall Street will be looking for positivity from KHC as it approaches its next earnings report date. In that report, analysts expect KHC to post earnings of $0.60 per share. This would mark a year-over-year decline of 32.58%. Meanwhile, our latest consensus estimate is calling for revenue of $6.08 billion, down 3.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $25.85 billion. These totals would mark changes of -20.11% and -1.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KHC. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.51% higher. KHC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 18.45, so we one might conclude that KHC is trading at a discount comparatively.
We can also see that KHC currently has a PEG ratio of 3.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. KHC's industry had an average PEG ratio of 2.4 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.