Kraft Heinz (KHC) closed at $28.15 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 0% on the day. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq gained 0.07%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 12.43% over the past month, outpacing the Consumer Staples sector's gain of 1.65% and the S&P 500's gain of 4.25% in that time.
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.
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 -24.93% and -3.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KHC. These revisions help to show the ever-changing nature of near-term business trends. 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 2.09% lower within the past month. KHC currently has a Zacks Rank of #4 (Sell).
In terms of valuation, KHC is currently trading at a Forward P/E ratio of 10.71. This represents a discount compared to its industry's average Forward P/E of 19.29.
Also, we should mention that KHC has a PEG ratio of 2.38. 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 2.6 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research