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

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Kraft Heinz (KHC) closed the most recent trading day at $39.93, moving +1.37% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 1.4% over the past month, lagging the Consumer Staples sector's loss of 0.53% and the S&P 500's gain of 3.75% in that time.

Kraft Heinz will be looking to display strength as it nears its next earnings release. On that day, Kraft Heinz is projected to report earnings of $0.62 per share, which would represent a year-over-year decline of 13.89%. Our most recent consensus estimate is calling for quarterly revenue of $5.77 billion, down 9.83% from the year-ago period.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $24.89 billion. These results would represent year-over-year changes of -9.9% and -4.42%, respectively.

It is also important to note the recent changes to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 remained stagnant. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 14.94. This valuation marks a discount compared to its industry's average Forward P/E of 18.78.

We can also see that KHC currently has a PEG ratio of 2.99. 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 2.99 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 10% 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.

To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.

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