Back to top

Image: Bigstock

Kraft Heinz (KHC) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

Kraft Heinz (KHC - Free Report) closed the most recent trading day at $25.27, moving -3.03% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.71%.

Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 4.51% in the past month. In that same time, the Consumer Staples sector lost 3.28%, while the S&P 500 gained 4.26%.

Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 22.67% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.27 billion, indicating a 1.72% decline compared to the corresponding quarter of the prior year.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.58 per share and revenue of $25.24 billion. These results would represent year-over-year changes of -15.69% and -2.35%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed a 0.16% decrease. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Kraft Heinz is currently being traded at a Forward P/E ratio of 10.11. This signifies a discount in comparison to the average Forward P/E of 16.05 for its industry.

Also, we should mention that KHC has a PEG ratio of 3.04. 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. The Food - Miscellaneous was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kraft Heinz Company (KHC) - free report >>

Published in