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Kraft Heinz (KHC) Stock Moves -0.48%: What You Should Know

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Kraft Heinz (KHC - Free Report) closed the most recent trading day at $37.36, moving -0.48% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.45%.

Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 9.48% over the past month, outpacing the Consumer Staples sector's loss of 6.96% and the S&P 500's loss of 5.33% in that time.

Kraft Heinz will be looking to display strength as it nears its next earnings release. In that report, analysts expect Kraft Heinz to post earnings of $0.52 per share. This would mark a year-over-year decline of 27.78%. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, down 10.24% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.64 per share and revenue of $24.89 billion, which would represent changes of -9.9% and -4.42%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.05% higher. Kraft Heinz currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 14.23. This represents a discount compared to its industry's average Forward P/E of 19.23.

Investors should also note that KHC has a PEG ratio of 2.85 right now. 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 2.96 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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