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Kraft Heinz (KHC) Dips More Than Broader Markets: What You Should Know
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Kraft Heinz (KHC - Free Report) closed at $35.51 in the latest trading session, marking a -1.36% move from the prior day. This move lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.48%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 1.78% over the past month. This has lagged the Consumer Staples sector's gain of 2.4% and outpaced the S&P 500's loss of 0.62% in that time.
Kraft Heinz will be looking to display strength as it nears its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, down 4.82% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $25.96 billion. These results would represent year-over-year changes of -3.13% and -0.87%, respectively.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.93. This valuation marks a discount compared to its industry's average Forward P/E of 19.69.
It is also worth noting that KHC currently has a PEG ratio of 2.59. 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. The Food - Miscellaneous was holding an average PEG ratio of 3.59 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.
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Kraft Heinz (KHC) Dips More Than Broader Markets: What You Should Know
Kraft Heinz (KHC - Free Report) closed at $35.51 in the latest trading session, marking a -1.36% move from the prior day. This move lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.48%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 1.78% over the past month. This has lagged the Consumer Staples sector's gain of 2.4% and outpaced the S&P 500's loss of 0.62% in that time.
Kraft Heinz will be looking to display strength as it nears its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, down 4.82% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $25.96 billion. These results would represent year-over-year changes of -3.13% and -0.87%, respectively.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.93. This valuation marks a discount compared to its industry's average Forward P/E of 19.69.
It is also worth noting that KHC currently has a PEG ratio of 2.59. 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. The Food - Miscellaneous was holding an average PEG ratio of 3.59 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.