Back to top

Image: Bigstock

Kraft Heinz (KHC) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Kraft Heinz (KHC - Free Report) closed at $22.30 in the latest trading session, marking a +0.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 4.34%. At the same time, the Dow lost 4.55%, and the tech-heavy Nasdaq lost 3.79%.

Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 18.75% over the past month, outpacing the Consumer Staples sector's loss of 24.15% and the S&P 500's loss of 28.78% in that time.

Wall Street will be looking for positivity from KHC as it approaches its next earnings report date.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.31 per share and revenue of $24.33 billion. These totals would mark changes of -18.95% and -2.57%, respectively, from last year.

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. 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. The Zacks Consensus EPS estimate has moved 1.12% lower within the past month. KHC is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note KHC's current valuation metrics, including its Forward P/E ratio of 9.65. Its industry sports an average Forward P/E of 13.3, so we one might conclude that KHC is trading at a discount comparatively.

We can also see that KHC currently has a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.27 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 108, which puts it in the top 43% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The Kraft Heinz Company (KHC) - free report >>

Published in