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Kraft Heinz (KHC) Outpaces Stock Market Gains: What You Should Know

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Kraft Heinz (KHC) closed at $38.64 in the latest trading session, marking a +1.31% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.06%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.55%.

Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 4.81% in the past month. In that same time, the Consumer Staples sector lost 2.93%, while the S&P 500 lost 8.3%.

Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.38 billion, down 3.51% from the year-ago period.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $25.61 billion. These results would represent year-over-year changes of -8.19% and -1.66%, respectively.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. Kraft Heinz currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 14.2. This represents a discount compared to its industry's average Forward P/E of 18.72.

It is also worth noting that KHC currently has a PEG ratio of 2.84. 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. KHC's industry had an average PEG ratio of 2.71 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 89, which puts it in the top 36% 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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