Kraft Heinz (KHC - Free Report) closed at $32.58 in the latest trading session, marking a +0.46% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 1.67% over the past month, lagging the Consumer Staples sector's gain of 1.44% and the S&P 500's loss of 0.43% in that time.
KHC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.60, down 32.58% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 3.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $25.81 billion. These totals would mark changes of -20.4% and -1.7%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for KHC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. KHC currently has a Zacks Rank of #3 (Hold).
Investors should also note KHC's current valuation metrics, including its Forward P/E ratio of 11.56. This represents a discount compared to its industry's average Forward P/E of 19.73.
Investors should also note that KHC has a PEG ratio of 2.57 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 2.26 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 97, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.