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Kraft Heinz (KHC) Advances While Market Declines: Some Information for Investors

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In the latest market close, Kraft Heinz (KHC - Free Report) reached $34.61, with a +0.06% movement compared to the previous day. This change outpaced the S&P 500's 0.96% loss on the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq lost 1.18%.

Prior to today's trading, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 3.49% over the past month. This has lagged the Consumer Staples sector's loss of 2.88% and the S&P 500's gain of 4.3% in that time.

The upcoming earnings release of Kraft Heinz will be of great interest to investors. It is anticipated that the company will report an EPS of $0.74, marking a 2.78% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.44 billion, reflecting a 2.05% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.02 per share and a revenue of $26.15 billion, indicating changes of +1.34% and -1.82%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. Right now, Kraft Heinz possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 11.46. This represents a discount compared to its industry's average Forward P/E of 17.4.

One should further note that KHC currently holds a PEG ratio of 3.38. 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 2.73 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 37% echelons 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.

To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.


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