In the latest trading session, Kraft Heinz (KHC) closed at $25.70, marking a -1.34% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.
The processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 6.86% in the past month, falling short of the Consumer Staples sector's loss of 2.06% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. On that day, Kraft Heinz is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 22.67%. Our most recent consensus estimate is calling for quarterly revenue of $6.27 billion, down 1.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.58 per share and a revenue of $25.24 billion, demonstrating changes of -15.69% and -2.35%, respectively, from the preceding year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% decrease. Kraft Heinz is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 10.11. This indicates a discount in contrast to its industry's Forward P/E of 16.44.
We can also see that KHC currently has a PEG ratio of 3.04. 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. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 1.79.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Kraft Heinz Company (KHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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