We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kraft Heinz (KHC) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $46.90, marking a +0.32% move from the previous day. This move outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, lost 1.11%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 6.83% over the past month. This has outpaced the Consumer Staples sector's gain of 4.96% and lagged the S&P 500's gain of 13.44% in that time.
KHC will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. The company is expected to report EPS of $0.95, up 5.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 1.15% from the year-ago period.
It is also important to note the recent changes to analyst estimates for KHC. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.12% lower. KHC is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 12.55. Its industry sports an average Forward P/E of 16.66, so we one might conclude that KHC is trading at a discount comparatively.
Also, we should mention that KHC has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kraft Heinz (KHC) Gains As Market Dips: What You Should Know
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $46.90, marking a +0.32% move from the previous day. This move outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, lost 1.11%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 6.83% over the past month. This has outpaced the Consumer Staples sector's gain of 4.96% and lagged the S&P 500's gain of 13.44% in that time.
KHC will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. The company is expected to report EPS of $0.95, up 5.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 1.15% from the year-ago period.
It is also important to note the recent changes to analyst estimates for KHC. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.12% lower. KHC is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 12.55. Its industry sports an average Forward P/E of 16.66, so we one might conclude that KHC is trading at a discount comparatively.
Also, we should mention that KHC has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.