Kraft Heinz (KHC) closed at $32.53 in the latest trading session, marking a +1.62% move from the prior day. This move outpaced the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.79%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 2.43% over the past month. This has outpaced the Consumer Staples sector's gain of 1.93% and the S&P 500's gain of 1.52% in that time.
KHC will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2019. On that day, KHC is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.64 billion, down 0.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.79 per share and revenue of $25.84 billion, which would represent changes of -20.96% and -1.59%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for KHC. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% lower. KHC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note KHC's current valuation metrics, including its Forward P/E ratio of 11.47. This represents a discount compared to its industry's average Forward P/E of 18.12.
Also, we should mention that KHC has a PEG ratio of 3.12. 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. KHC's industry had an average PEG ratio of 2.57 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Kraft Heinz Company (KHC) : Free Stock Analysis Report
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