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Kraft Heinz (KHC) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $23.77, marking a -2.54% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.

Prior to today's trading, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had gained 0.21% outpaced the Consumer Staples sector's loss of 0.94% and lagged the S&P 500's gain of 0.55%.

The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 27.38% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.39 billion, down 2.8% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.53 per share and revenue of $24.98 billion, which would represent changes of -17.32% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.5% lower. As of now, Kraft Heinz holds a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Kraft Heinz has a Forward P/E ratio of 9.76 right now. This represents a discount compared to its industry average Forward P/E of 13.46.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 20% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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