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Kraft Heinz (KHC) Gains As Market Dips: What You Should Know

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Kraft Heinz (KHC - Free Report) closed at $36.83 in the latest trading session, marking a +0.19% move from the prior day. This move outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 10.89% in the past month. In that same time, the Consumer Staples sector gained 7.91%, while the S&P 500 gained 3.67%.

Kraft Heinz will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.63, down 21.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.6 billion, down 4.82% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% 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.

Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 14.04. This represents a discount compared to its industry's average Forward P/E of 19.32.

Investors should also note that KHC has a PEG ratio of 2.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KHC's industry had an average PEG ratio of 3.44 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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