In the latest close session, Kraft Heinz (KHC) was up +1.69% at $27.06. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.94%.
Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 0.67% over the past month, outpacing the Consumer Staples sector's loss of 1.16% and lagging the S&P 500's gain of 5.13%.
The upcoming earnings release of Kraft Heinz will be of great interest to investors. The company is predicted to post an EPS of $0.64, indicating a 17.95% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.26 billion, showing a 3.34% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.57 per share and revenue of $24.97 billion, which would represent changes of -16.01% and -3.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Kraft Heinz presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 10.35. For comparison, its industry has an average Forward P/E of 15.34, which means Kraft Heinz is trading at a discount to the group.
It's also important to note that KHC currently trades at a PEG ratio of 3.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Food - Miscellaneous industry stood at 1.61 at the close of the market yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 26% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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