In the latest trading session, Kraft Heinz (KHC) closed at $28.45, marking a -0.56% move from the previous day. This change lagged the S&P 500's daily gain of 0.19%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.81%.
Coming into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 1.67% in the past month. In that same time, the Consumer Staples sector lost 0.17%, while the S&P 500 gained 0.56%.
KHC will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2019. The company is expected to report EPS of $0.55, down 29.49% from the prior-year quarter. 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 $25.25 billion, which would represent changes of -24.93% and -3.86%, respectively, from the prior year.
Any recent changes to analyst estimates for KHC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. KHC is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that KHC has a Forward P/E ratio of 10.81 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.54.
Investors should also note that KHC has a PEG ratio of 2.4 right now. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.45 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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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