Kraft Heinz (KHC) Gains As Market Dips: What You Should Know
Kraft Heinz (KHC) closed the most recent trading day at $38.14, moving +0.42% from the previous trading session. This change outpaced the S&P 500's 0.88% loss on the day. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 1.96% in the past month. In that same time, the Consumer Staples sector lost 2.9%, while the S&P 500 lost 8.06%.
Wall Street will be looking for positivity from Kraft Heinz as it approaches its next earnings report date. In that report, analysts expect Kraft Heinz to post earnings of $0.67 per share. This would mark a year-over-year decline of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $6.38 billion, down 3.51% from the prior-year quarter.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $25.61 billion. These results would represent year-over-year changes of -8.19% and -1.66%, respectively.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. Kraft Heinz is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 14.14. For comparison, its industry has an average Forward P/E of 18.63, which means Kraft Heinz is trading at a discount to the group.
Also, we should mention that KHC has a PEG ratio of 2.83. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.74 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 40% 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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