Kraft Heinz (KHC) closed at $34.26 in the latest trading session, marking a -0.52% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 11.49% over the past month, lagging the Consumer Staples sector's loss of 7.2% and the S&P 500's loss of 10.24% in that time.
Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. The company is expected to report EPS of $0.57, down 12.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.21 billion, down 1.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.66 per share and revenue of $25.99 billion, which would represent changes of -9.22% and -0.21%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.79% lower within the past month. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 12.97. Its industry sports an average Forward P/E of 17.97, so we one might conclude that Kraft Heinz is trading at a discount comparatively.
It is also worth noting that KHC currently has a PEG ratio of 2.59. 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 2.66 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 167, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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