Kraft Heinz (KHC) closed the most recent trading day at $31.54, moving +1.58% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.62%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.74%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 0.26% over the past month, lagging the Consumer Staples sector's gain of 2.49% and the S&P 500's gain of 2.8% in that time.
Wall Street will be looking for positivity from KHC as it approaches its next earnings report date. The company is expected to report EPS of $0.76, down 24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.64 billion, down 0.76% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.80 per share and revenue of $25.84 billion. These results would represent year-over-year changes of -20.68% and -1.58%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. KHC is currently a Zacks Rank #3 (Hold).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 11.11. For comparison, its industry has an average Forward P/E of 19.33, which means KHC is trading at a discount to the group.
It is also worth noting that KHC currently has a PEG ratio of 3.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.35 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 99, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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