In the latest trading session, Kraft Heinz (KHC – Free Report) closed at $30.68, marking a +0.43% move from the previous day. This move outpaced the S&P 500’s daily loss of 1.11%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.49%.
Shares of the processed food company with dual headquarters in Pittsburgh and Chicago witnessed a loss of 4.32% over the previous month, beating the performance of the Consumer Staples sector with its loss of 4.46% and underperforming the S&P 500’s gain of 0.4%.
The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company is forecasted to report an EPS of $0.79, showcasing a 1.28% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6.69 billion, reflecting a 2.53% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $25.96 billion. These totals would mark changes of +1.01% and -2.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there’s been a 0.06% fall in the Zacks Consensus EPS estimate. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Kraft Heinz is presently trading at a Forward P/E ratio of 10.16. Its industry sports an average Forward P/E of 17.18, so one might conclude that Kraft Heinz is trading at a discount comparatively.
It is also worth noting that KHC currently has a PEG ratio of 3.59. 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. As the market closed yesterday, the Food – Miscellaneous industry was having an average PEG ratio of 2.87.
The Food – Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Financial Market Newsflash
No financial news published today. Check back later.
