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Kraft Heinz (KHC) Stock Sinks As Market Gains: Here's Why
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The latest trading session saw Kraft Heinz (KHC - Free Report) ending at $35.94, denoting a -1.45% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 1.25%.
The the processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 2.95% in the past month, falling short of the Consumer Staples sector's gain of 0.93% and the S&P 500's gain of 5.07%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. The company is expected to report EPS of $0.77, down 9.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, down 5.55% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Kraft Heinz is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 12.12. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
It's also important to note that KHC currently trades at a PEG ratio of 2.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.39.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Kraft Heinz (KHC) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Kraft Heinz (KHC - Free Report) ending at $35.94, denoting a -1.45% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 1.25%.
The the processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 2.95% in the past month, falling short of the Consumer Staples sector's gain of 0.93% and the S&P 500's gain of 5.07%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. The company is expected to report EPS of $0.77, down 9.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, down 5.55% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Kraft Heinz is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 12.12. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
It's also important to note that KHC currently trades at a PEG ratio of 2.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.39.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.