Kraft Heinz (KHC) closed the most recent trading day at $26.66, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.83%. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.02%.
Shares of the processed food company with dual headquarters in Pittsburgh and Chicago witnessed a gain of 1.35% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.61%, and underperforming the S&P 500's gain of 4.99%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 17.95% decrease from the same 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 project earnings of $2.57 per share and a revenue of $24.97 billion, demonstrating changes of -16.01% and -3.38%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates 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 business outlook.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Kraft Heinz currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 10.52. This denotes a discount relative to the industry average Forward P/E of 15.43.
We can additionally observe that KHC currently boasts a PEG ratio of 3.16. 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. KHC's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 26% of all 250+ industries.
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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