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Kraft Heinz (KHC) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Kraft Heinz (KHC - Free Report) standing at $36.59, reflecting a +0.77% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.

The the processed food company with dual headquarters in Pittsburgh and Chicago's stock has climbed by 3.98% in the past month, exceeding the Consumer Staples sector's loss of 4.27% and the S&P 500's loss of 0.9%.

The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. The company is expected to report EPS of $0.68, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.42 billion, down 1.12% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.02 per share and a revenue of $26.77 billion, demonstrating changes of +1.34% and +0.49%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. Such recent modifications usually signify the changing landscape of 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Kraft Heinz holds a Zacks Rank of #3 (Hold).

Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.01. For comparison, its industry has an average Forward P/E of 17.6, 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 2.87. 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. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 1.96.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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