In the latest trading session, Kraft Heinz (KHC) closed at $29.25, marking a +0.76% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.22%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 15.84% in the past month. In that same time, the Consumer Staples sector gained 3.21%, while the S&P 500 gained 4.58%.
Investors will be hoping for strength from KHC as it approaches its next earnings release. The company is expected to report EPS of $0.55, down 30.13% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.15 billion, down 3.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $25.42 billion, which would represent changes of -24.88% and -3.21%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 2.87% lower. KHC currently has a Zacks Rank of #4 (Sell).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 10.95. For comparison, its industry has an average Forward P/E of 20.39, which means KHC is trading at a discount to the group.
Also, we should mention that KHC has a PEG ratio of 2.43. 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. 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 group has a Zacks Industry Rank of 168, putting it in the bottom 35% 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.
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The Kraft Heinz Company (KHC) : Free Stock Analysis Report
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