|Bid||48.26 x 800|
|Ask||48.27 x 800|
|Day's Range||48.02 - 48.94|
|52 Week Range||32.17 - 49.56|
|Beta (5Y Monthly)||0.45|
|PE Ratio (TTM)||79.74|
|Earnings Date||Feb 24, 2020 - Mar 01, 2020|
|Forward Dividend & Yield||1.40 (2.88%)|
|Ex-Dividend Date||Jan 06, 2020|
|1y Target Est||45.20|
People are pouring their blood, spit and tears into finding the best diet for their bodies. April Summerford, a women’s health coach in Fresno, Calif., has spent thousands of dollars over the past several years taking at-home DNA tests, reading her hormone levels and analyzing the bacteria in her gut to create the perfect diet for her particular body. “I’ve been able to biohack my way to feeling better through what, I think, is the future of wellness,” Summerford, 34, told MarketWatch.
This time last year, Kraft Heinz (NASDAQ:KHC) reported fourth-quarter results that will live in infamy. It's not often that a Warren Buffett investment delivers an $11 a share impairment charge in a single quarter, but that's what happened on Feb. 21, 2019. As a result, Kraft Heinz stock dropped 27% in a single day of trading. Source: Casimiro PT / Shutterstock.com It has been a rocky road for Kraft Heinz shareholders ever since. On Feb. 13, the company reports its fourth-quarter results, and while they're not expected to be anything to write home about, compared to last year's carnage, they will be relatively good. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Biotech Stocks to Buy That Could Beat the Coronavirus The question for investors at this point is simple: Where to next?Before I get to that, let's get some of the critical numbers out of the way. Earnings Expectations for Q4According to Yahoo Finance, Kraft Heinz is expected to announce revenue of $6.6 billion and earnings of 68 cents in the fourth quarter. This would suggest a decline of 4.2% and 19%, respectively, from a year earlier. Ouch. However, as I said, there shouldn't be any surprises like there were last year. Not only did the company take a $15.4 billion impairment charge in Q4 2019, the seventh-largest impairment charge since 2009, it also announced an SEC probe that led to a $25 million accounting correction. "Quite unusually, the impairment was triggered by short term developments in the second part of 2018, as opposed to a routine impairment evaluation," wrote research firm Audit Analytics after last year's debacle. As long as the words "impairment charge" don't make their way into the quarterly press release, it should be fine.Not only that, but the company has managed to deliver positive earnings surprises in the last two quarters -- 30% in Q3 2019 and 4% in Q2 2019 -- so it's more than possible that it will do it again on Feb. 13.Ah, the silver lining. Where to for Kraft Heinz Stock?The current target price, according to The Wall Street Journal, is $31.05 with a high of $37 and a low of $23. Based on the average, we're looking at 7.5% upside over the next 12 months. That's not very encouraging if you're Warren Buffett. The Motley Fool's Keith Noonan did an excellent job in November, pointing out how much Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) has made to date on its 26.8% stake in the company. Berkshire paid about $30 a share for its stake. As I write this, it's trading around $29, so the holding company is down $325 million on the stock price since 2015, but up more than $3.5 billion on the dividends. As Noonan said, Berkshire's gains pale in comparison to the performance of the S&P 500 over the same period. It's for this reason Buffett has admitted that it paid too much for Kraft Heinz. In January, CEO Miguel Patricio revealed the company's strategy for extricating itself from the hole it's dug. "My role is to simplify this business. Fewer, bigger bets," Patricio told the Journal. "If you try to innovate in 56 different categories every year, you can't execute on all of them. We need to be more selective."It also needs to meet the needs of consumers hankering for healthier food choices. Kraft Dinner is not on most people's list of healthful eating.However, the fact that it hired Campbell Soup (NYSE:CPB) executive Carlos Abrams-Rivera to run its U.S. business does not give me a warm, fuzzy feeling. Campbell's is not exactly known for being an innovation machine. And while I'm sure Abrams-Rivera is a perfectly good executive, it smacks of "more of the same."In November, I pointed out that Kraft Heinz Chairman Alex Behring, one of 3G Capital's founding partners, approached Patricio about the job early in 2019. The fact that Patricio hired Flavio Torres as Kraft Heinz's head of global operations -- Torres is a former colleague of Patricio's at Anheuser-Busch InBev (NYSE:BUD) -- suggests to me that the 3G cronyism continues despite the talk of innovation and simplification at the company. The Bottom LineI'm not sure at what price I would recommend KHC stock. I certainly wouldn't buy it in the $30s. At least not until the CEO proves that his strategy is more than Business School 101. That said, I don't think there's anything that we'll see from Kraft Heinz's quarterly report that will further damage its stock price. I guess we'll find out soon enough if that's the case.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post Relatively Speaking, Kraft Heinz Q4 2019 Earnings Should Be Good appeared first on InvestorPlace.
Impacts of the divestiture of the cookies, fruit snacks, pie crust and ice cream cones businesses are likely to get reflected in Kellogg's (K) fourth-quarter 2019 results.
Estee Lauder's (EL) second-quarter fiscal 2020 performance is likely to have benefited from growth in emerging markets, travel retail and online sales. However, currency woes remain a threat.
Campbell (CPB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Hain Celestial's (HAIN) second-quarter fiscal 2020 results might reflect gains from transformation strategy. However, any deleverage in SG&A expenses and commodity inflation cannot be ignored.
Soft Consumer Beauty unit and supply chain hurdles are likely to get reflected in Coty's (COTY) performance in Q2. Nevertheless, robust Luxury segment and transformation efforts bode well.
Tyson Foods' (TSN) Q1 results are likely to have gained from solid demand for protein-packed brands. Also, efforts to bolster presence in the fresh prepared foods category bode well.
Sysco's (SYY) second-quarter fiscal 2020 results are likely to reflect gains from focus on key strategies. The U.S. Foodservice unit has been solid but the International unit's performance has been mixed.
Archer Daniels' (ADM) fourth-quarter 2019 earnings benefit from the passage of retroactive biodiesel tax credit for 2018 and 2019. Strong Nutrition and Refined product units were other growth drivers.
Hershey's (HSY) Q4 results benefit from improved price realization and acquisitions. However, currency rates and lower volumes are headwinds.
Church & Dwight's (CHD) Q4 performance is likely to have benefited from international business strength, acquisitions and market share gains.
The Zacks Analyst Blog Highlights: Ares Capital, Booz Allen Hamilton, Campbell Soup Company, DHT and The Buckle
Campbell Soup (CPB) is benefiting from its portfolio refinement efforts and strong snacks business. Also, it is on track with cost-saving initiatives.
TreeHouse Foods (THS) has been seeing soft sales for a while. Meanwhile, investors can look at four solid food stocks, which carry a solid Zacks Rank and a splendid earnings surprise record.