In the latest market close, Kraft Heinz (KHC) reached $30.20, with a +0.87% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
Shares of the processed food company with dual headquarters in Pittsburgh and Chicago witnessed a gain of 2.82% over the previous month, beating the performance of the Consumer Staples sector with its gain of 2.1% and the S&P 500's loss of 8.86%.
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 April 29, 2025. The company is forecasted to report an EPS of $0.60, showcasing a 13.04% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6 billion, down 6.46% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.67 per share and revenue of $24.95 billion, indicating changes of -12.75% and -3.48%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Kraft Heinz. 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 company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. Kraft Heinz is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 11.22. This expresses a discount compared to the average Forward P/E of 15.56 of its industry.
Also, we should mention that KHC has a PEG ratio of 3.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
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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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