Kraft Heinz (KHC - Free Report) closed at $28.14 in the latest trading session, marking a +0.75% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.05%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 11.72% over the past month. This has outpaced the Consumer Staples sector's gain of 1.35% and the S&P 500's gain of 3.85% in that time.
Wall Street will be looking for positivity from KHC as it approaches its next earnings report date. In that report, analysts expect KHC to post earnings of $0.55 per share. This would mark a year-over-year decline of 29.49%. Our most recent consensus estimate is calling for quarterly revenue of $6.15 billion, down 3.59% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $25.42 billion. These results would represent year-over-year changes of -24.93% and -3.21%, respectively.
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. 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. 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 2.01% lower. KHC currently has a Zacks Rank of #4 (Sell).
Digging into valuation, KHC currently has a Forward P/E ratio of 10.53. For comparison, its industry has an average Forward P/E of 18.81, which means KHC is trading at a discount to the group.
We can also see that KHC currently has a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.62 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.