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Kraft Heinz (KHC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $37.32, marking a -0.29% move from the previous day. This move lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 2.53% over the past month, outpacing the Consumer Staples sector's loss of 3.95% and the S&P 500's loss of 5.51% in that time.

Kraft Heinz will be looking to display strength as it nears its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.60 per share, which would represent a year-over-year decline of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $6.24 billion, down 1.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.68 per share and revenue of $25.94 billion. These totals would mark changes of -8.53% and -0.4%, respectively, from last year.

It is also important to note the 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. 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 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 remained stagnant within the past month. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 13.98. This valuation marks a discount compared to its industry's average Forward P/E of 17.8.

It is also worth noting that KHC currently has a PEG ratio of 2.8. 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 2.75 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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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