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Why the Market Dipped But Kraft Heinz (KHC) Gained Today

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Kraft Heinz (KHC - Free Report) ended the recent trading session at $34.84, demonstrating a +0.99% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 1.16%.

Shares of the the processed food company with dual headquarters in Pittsburgh and Chicago witnessed a loss of 5.4% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 0.16% and the S&P 500's gain of 3.4%.

Analysts and investors alike will be keeping a close eye on the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.68, reflecting no change from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.42 billion, reflecting a 1.12% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.02 per share and revenue of $26.77 billion. These totals would mark changes of +1.34% and +0.49%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. At present, Kraft Heinz boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 11.41. This expresses a discount compared to the average Forward P/E of 17.49 of its industry.

Investors should also note that KHC has a PEG ratio of 2.73 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. KHC's industry had an average PEG ratio of 2.02 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 146, which puts it in the bottom 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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