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Kellogg (K) Gains As Market Dips: What You Should Know

·3 min read

In the latest trading session, Kellogg (K) closed at $71.08, marking a +1.05% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Coming into today, shares of the maker of Frosted Flakes, Pop Tarts and Eggo waffles had lost 7.34% in the past month. In that same time, the Consumer Staples sector lost 6.82%, while the S&P 500 lost 9.06%.

Kellogg will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.96, down 11.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.76 billion, up 3.91% from the year-ago period.

K's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $14.86 billion. These results would represent year-over-year changes of -0.96% and +4.78%, respectively.

Investors should also note any recent changes to analyst estimates for Kellogg. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 0.1% higher within the past month. Kellogg currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Kellogg currently has a Forward P/E ratio of 17.06. This valuation marks a discount compared to its industry's average Forward P/E of 18.78.

It is also worth noting that K currently has a PEG ratio of 4.16. 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 2.61 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 152, which puts it in the bottom 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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