Kraft Heinz (KHC) Registers a Bigger Fall Than the Market: Important Facts to Note

Kraft Heinz (KHC) closed the most recent trading day at $34.32, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the the processed food company with dual headquarters in Pittsburgh and Chicago had gained 1.08% in the past month. In that same time, the Consumer Staples sector gained 3.48%, while the S&P 500 gained 4.42%.

The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company is predicted to post an EPS of $0.68, indicating constancy compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.42 billion, indicating a 1.12% decrease compared to the same quarter of the previous year.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $3.02 per share and revenue of $26.77 billion. These results would represent year-over-year changes of +1.34% and +0.49%, respectively.

Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 17.33, which means Kraft Heinz is trading at a discount to the group.

One should further note that KHC currently holds a PEG ratio of 2.73. 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. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.01.

The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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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.

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