In the latest trading session, Kraft Heinz (KHC) closed at $26.08, marking a -1.44% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%.
Prior to today's trading, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 3.75% lagged the Consumer Staples sector's gain of 3.14% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company is expected to report EPS of $0.64, down 17.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.26 billion, down 3.34% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.57 per share and a revenue of $24.97 billion, signifying shifts of -16.01% and -3.38%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Kraft Heinz is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 10.29. This valuation marks a discount compared to its industry average Forward P/E of 17.14.
Also, we should mention that KHC has a PEG ratio of 3.09. 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 1.6.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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