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Kraft Heinz (KHC) closed at $37.22 in the latest trading session, marking a -0.56% move from the prior day. This change was narrower than the S&P 500's 0.97% loss on the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 6.94% over the past month. This has outpaced the Consumer Staples sector's gain of 1.69% and the S&P 500's loss of 0.78% in that time.
Wall Street will be looking for positivity from Kraft Heinz as it approaches its next earnings report date. This is expected to be February 16, 2022. The company is expected to report EPS of $0.63, down 21.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.6 billion, down 4.82% from the prior-year quarter.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Kraft Heinz has a Forward P/E ratio of 14.27 right now. Its industry sports an average Forward P/E of 18.59, so we one might conclude that Kraft Heinz is trading at a discount comparatively.
Investors should also note that KHC has a PEG ratio of 2.85 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. The Food - Miscellaneous industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.
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