Kraft Heinz (KHC) Outpaces Stock Market Gains: What You Should Know
Kraft Heinz (KHC) closed the most recent trading day at $26.98, moving +1.64% from the previous trading session. This change outpaced the S&P 500's 1.42% gain on the day. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 1.4%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 0.19% over the past month. This has was narrower than the Consumer Staples sector's loss of 1.32% and lagged the S&P 500's gain of 0.38% in that time.
Wall Street will be looking for positivity from KHC as it approaches its next earnings report date. On that day, KHC is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 29.49%. Meanwhile, our latest consensus estimate is calling for revenue of $6.15 billion, down 3.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.65 per share and revenue of $25.42 billion. These totals would mark changes of -24.93% and -3.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for KHC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.69% lower. KHC currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, KHC is holding a Forward P/E ratio of 10.01. Its industry sports an average Forward P/E of 18.56, 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 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Kraft Heinz Company (KHC): Free Stock Analysis Report
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