Kraft Heinz (KHC) closed at $32.13 in the latest trading session, marking a -0.83% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.59%. Elsewhere, the Dow lost 2.72%, while the tech-heavy Nasdaq lost 2.19%.
Wall Street will be looking for positivity from KHC as it approaches its next earnings report date. In that report, analysts expect KHC to post earnings of $0.63 per share. This would mark a year-over-year decline of 19.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 0.42% from the year-ago period.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $24.98 billion. These results would represent year-over-year changes of -17.89% and +0.01%, respectively.
Investors might also notice recent changes to analyst estimates for KHC. 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.
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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. KHC currently has a Zacks Rank of #3 (Hold).
Investors should also note KHC's current valuation metrics, including its Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 18.12, so we one might conclude that KHC is trading at a discount comparatively.
Investors should also note that KHC has a PEG ratio of 2.3 right now. 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 3.38 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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