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Why the Market Dipped But Kraft Heinz (KHC) Gained Today
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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $35.14, marking a +0.29% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 0.71% in the past month. In that same time, the Consumer Staples sector gained 3.54%, while the S&P 500 gained 1.57%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is expected to report EPS of $0.74, up 2.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.44 billion, down 1.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $26.16 billion, which would represent changes of +1.34% and -1.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 11.6. For comparison, its industry has an average Forward P/E of 18.42, which means Kraft Heinz is trading at a discount to the group.
It's also important to note that KHC currently trades at a PEG ratio of 3.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.77.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why the Market Dipped But Kraft Heinz (KHC) Gained Today
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $35.14, marking a +0.29% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 0.71% in the past month. In that same time, the Consumer Staples sector gained 3.54%, while the S&P 500 gained 1.57%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is expected to report EPS of $0.74, up 2.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.44 billion, down 1.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $26.16 billion, which would represent changes of +1.34% and -1.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 11.6. For comparison, its industry has an average Forward P/E of 18.42, which means Kraft Heinz is trading at a discount to the group.
It's also important to note that KHC currently trades at a PEG ratio of 3.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.77.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.