Kraft Heinz (KHC - Free Report) closed the most recent trading day at $32.16, moving +0.19% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 2.02%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 32.03% over the past month, lagging the Consumer Staples sector's gain of 0.07% and the S&P 500's gain of 1.5% in that time.
Investors will be hoping for strength from KHC as it approaches its next earnings release. The company is expected to report EPS of $0.64, down 28.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.25 billion, down 0.92% from the prior-year quarter.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $26.17 billion. These results would represent year-over-year changes of -19.26% and -0.36%, respectively.
Investors might also notice recent changes to analyst estimates for KHC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 23.66% lower. KHC is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, KHC currently has a Forward P/E ratio of 11.28. For comparison, its industry has an average Forward P/E of 16.17, which means KHC is trading at a discount to the group.
It is also worth noting that KHC currently has a PEG ratio of 2.51. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.