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Kraft Heinz (KHC) Gains But Lags Market: What You Should Know
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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $40.68, marking a +0.59% move from the previous day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 2.77% over the past month, outpacing the Consumer Staples sector's gain of 0.4% and the S&P 500's loss of 4.4% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 1.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 6.63% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.70 per share and revenue of $26.28 billion. These results would represent year-over-year changes of -7.85% and +0.91%, respectively.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 14.97. Its industry sports an average Forward P/E of 19.08, so we one might conclude that Kraft Heinz is trading at a discount comparatively.
We can also see that KHC currently has a PEG ratio of 2.99. 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 3.18 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kraft Heinz (KHC) Gains But Lags Market: What You Should Know
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $40.68, marking a +0.59% move from the previous day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 2.77% over the past month, outpacing the Consumer Staples sector's gain of 0.4% and the S&P 500's loss of 4.4% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 1.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 6.63% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.70 per share and revenue of $26.28 billion. These results would represent year-over-year changes of -7.85% and +0.91%, respectively.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 14.97. Its industry sports an average Forward P/E of 19.08, so we one might conclude that Kraft Heinz is trading at a discount comparatively.
We can also see that KHC currently has a PEG ratio of 2.99. 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 3.18 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.