Kraft Heinz (KHC) closed the most recent trading day at $26.94, moving +0.79% from the previous trading session. This change outpaced the S&P 500's 0.64% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 8.71% in the past month. In that same time, the Consumer Staples sector lost 1.45%, while the S&P 500 lost 1.87%.
KHC will be looking to display strength as it nears its next earnings release. On that day, KHC is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 29.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.15 billion, down 3.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.65 per share and revenue of $25.37 billion. These totals would mark changes of -24.93% and -3.38%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KHC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. KHC is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note KHC's current valuation metrics, including its Forward P/E ratio of 10.09. For comparison, its industry has an average Forward P/E of 18.24, which means KHC is trading at a discount to the group.
Also, we should mention that KHC has a PEG ratio of 2.24. 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. KHC's industry had an average PEG ratio of 2.47 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 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The Kraft Heinz Company (KHC) : Free Stock Analysis Report
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