Kraft Heinz (KHC) Outpaces Stock Market Gains: What You Should Know
Kraft Heinz (KHC) closed at $32.96 in the latest trading session, marking a +0.21% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 2.72% in the past month. In that same time, the Consumer Staples sector gained 3.46%, while the S&P 500 gained 2.89%.
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 $0.61 per share. This would mark a year-over-year decline of 31.46%. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 3.73% 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 $25.77 billion. These totals would mark changes of -20.11% and -1.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KHC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.26% lower. KHC is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 11.67. This represents a discount compared to its industry's average Forward P/E of 18.81.
Investors should also note that KHC has a PEG ratio of 2.59 right now. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% 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.
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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