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Kraft Heinz (KHC) Gains As Market Dips: What You Should Know
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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $36.40, marking a +0.72% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 0.19% over the past month, lagging the Consumer Staples sector's gain of 2.2% and the S&P 500's gain of 3.58% in that time.
Kraft Heinz will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. The company is expected to report EPS of $0.75, up 7.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 4.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $27.16 billion, which would represent changes of +3.24% and +2.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.15% lower. Kraft Heinz is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.59. For comparison, its industry has an average Forward P/E of 16.93, which means Kraft Heinz is trading at a discount to the group.
It is also worth noting that KHC currently has a PEG ratio of 2.82. 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 2.87 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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 $36.40, marking a +0.72% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 0.19% over the past month, lagging the Consumer Staples sector's gain of 2.2% and the S&P 500's gain of 3.58% in that time.
Kraft Heinz will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. The company is expected to report EPS of $0.75, up 7.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 4.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $27.16 billion, which would represent changes of +3.24% and +2.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.15% lower. Kraft Heinz is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.59. For comparison, its industry has an average Forward P/E of 16.93, which means Kraft Heinz is trading at a discount to the group.
It is also worth noting that KHC currently has a PEG ratio of 2.82. 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 2.87 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.