In the latest trading session, Kraft Heinz (KHC) closed at $23.43, marking a +1.83% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen a decrease of 5.5% over the last month, not keeping up with the Consumer Staples sector's loss of 2.96% and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.61, marking a 27.38% fall compared to the same quarter of the previous 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 0%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, the Zacks Consensus EPS estimate has shifted 0.5% downward. Kraft Heinz is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 9.2. This signifies a discount in comparison to the average Forward P/E of 12.6 for its industry.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 22% 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.
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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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