Kraft Heinz (KHC) closed the most recent trading day at $47.33, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.13%.
Heading into today, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had gained 4.08% over the past month, lagging the Consumer Staples sector's gain of 4.58% and the S&P 500's gain of 5.36% in that time.
KHC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.94, up 4.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.95 billion, up 1.12% from the prior-year quarter.
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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. KHC is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, KHC currently has a Forward P/E ratio of 12.77. This valuation marks a discount compared to its industry's average Forward P/E of 15.65.
Investors should also note that KHC has a PEG ratio of 2.32 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. KHC's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% 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.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.
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