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Kraft Heinz (KHC) Gains As Market Dips: What You Should Know
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $39.95, marking a +0.33% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 2.78% over the past month, lagging the Consumer Staples sector's loss of 1.82% and the S&P 500's gain of 4.57% in that time.
Wall Street will be looking for positivity from Kraft Heinz as it approaches its next earnings report date. This is expected to be February 15, 2023. The company is expected to report EPS of $0.77, down 2.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.11 billion, up 6.04% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 0.12% lower. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 14.55. This valuation marks a discount compared to its industry's average Forward P/E of 18.57.
It is also worth noting that KHC currently has a PEG ratio of 2.91. 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. The Food - Miscellaneous was holding an average PEG ratio of 2.81 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% 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.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.