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Kraft Heinz (KHC) Stock Moves -0.35%: What You Should Know

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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $37.27, marking a -0.35% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.38%. At the same time, the Dow lost 1.94%, and the tech-heavy Nasdaq lost 0.6%.

Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 14.02% over the past month, lagging the Consumer Staples sector's loss of 1.43% and the S&P 500's loss of 0.07% 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 $0.68 per share. This would mark a year-over-year decline of 12.82%. Our most recent consensus estimate is calling for quarterly revenue of $6.4 billion, down 3.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.69 per share and revenue of $25.61 billion. These totals would mark changes of -8.19% and -1.66%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.23% lower 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 13.92. Its industry sports an average Forward P/E of 17.37, so we one might conclude that Kraft Heinz is trading at a discount comparatively.

Meanwhile, KHC's PEG ratio is currently 2.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.45 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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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