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Kraft Heinz (KHC) Gains But Lags Market: What You Should Know
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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $35.25, marking a +0.4% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 0.23% over the past month. This has lagged the Consumer Staples sector's gain of 3.17% and the S&P 500's gain of 0.39% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. The company is expected to report EPS of $0.63, down 21.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, down 4.82% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $25.96 billion. These results would represent year-over-year changes of -3.13% and -0.87%, respectively.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Kraft Heinz is currently a Zacks Rank #3 (Hold).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.61. This valuation marks a discount compared to its industry's average Forward P/E of 20.88.
Meanwhile, KHC's PEG ratio is currently 2.52. 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. The Food - Miscellaneous was holding an average PEG ratio of 3.44 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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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Kraft Heinz (KHC) Gains But Lags Market: What You Should Know
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $35.25, marking a +0.4% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 0.23% over the past month. This has lagged the Consumer Staples sector's gain of 3.17% and the S&P 500's gain of 0.39% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. The company is expected to report EPS of $0.63, down 21.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, down 4.82% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $25.96 billion. These results would represent year-over-year changes of -3.13% and -0.87%, respectively.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Kraft Heinz is currently a Zacks Rank #3 (Hold).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.61. This valuation marks a discount compared to its industry's average Forward P/E of 20.88.
Meanwhile, KHC's PEG ratio is currently 2.52. 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. The Food - Miscellaneous was holding an average PEG ratio of 3.44 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.