Kraft Heinz (KHC) Gains But Lags Market: What You Should Know
Kraft Heinz (KHC) closed the most recent trading day at $38.04, moving +0.26% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 5.15% over the past month, lagging the Consumer Staples sector's loss of 1.2% and the S&P 500's loss of 2.95% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. The company is expected to report EPS of $0.60, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 6.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.71 per share and revenue of $27.12 billion, which would represent changes of -2.52% and +2.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 0.07% lower within the past month. Kraft Heinz is currently a Zacks Rank #3 (Hold).
Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 13.98. This represents a discount compared to its industry's average Forward P/E of 18.06.
Investors should also note that KHC has a PEG ratio of 3.44 right now. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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