Kraft Heinz (KHC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Kraft Heinz (KHC) closed at $32.50, marking a -0.46% move from the previous day. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 1.63% in the past month. In that same time, the Consumer Staples sector gained 3.99%, while the S&P 500 gained 1.92%.
KHC will be looking to display strength as it nears its next earnings release. In that report, analysts expect KHC to post earnings of $0.63 per share. This would mark a year-over-year decline of 29.21%. Meanwhile, our latest consensus estimate is calling for revenue of $6.11 billion, down 3.12% 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 $25.81 billion. These totals would mark changes of -20.11% and -1.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for KHC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 4.33% lower within the past month. KHC currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, KHC is holding a Forward P/E ratio of 11.56. This represents a discount compared to its industry's average Forward P/E of 18.1.
It is also worth noting that KHC currently has a PEG ratio of 2.57. 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 2.3 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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