In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $32.03, marking a -0.19% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 32.21% in the past month. In that same time, the Consumer Staples sector gained 1.75%, while the S&P 500 gained 1.83%.
KHC will be looking to display strength as it nears its next earnings release. On that day, KHC is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 24.72%. Meanwhile, our latest consensus estimate is calling for revenue of $6.13 billion, down 2.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.94 per share and revenue of $26 billion. These totals would mark changes of -16.71% and -0.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KHC. These recent revisions tend to reflect the evolving nature of short-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 20.75% lower. KHC is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, KHC currently has a Forward P/E ratio of 10.9. For comparison, its industry has an average Forward P/E of 17.46, which means KHC is trading at a discount to the group.
Investors should also note that KHC has a PEG ratio of 2.42 right now. 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 2.18 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.