In the latest close session, Kraft Heinz (KHC) was down 1.47% at $24.15. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.52%.
The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen a decrease of 3.08% over the last month, not keeping up with the Consumer Staples sector's gain of 1.57% and the S&P 500's gain of 3%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.61, showcasing a 27.38% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, down 2.8% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.53 per share and a revenue of $24.98 billion, indicating changes of -17.32% and -3.35%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Kraft Heinz. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Kraft Heinz is currently a Zacks Rank #4 (Sell).
In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 9.68. This indicates a discount in contrast to its industry's Forward P/E of 14.13.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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