KHC - The Kraft Heinz Company
25.10 -0.04 (-0.16%)
After hours: 6:30PM EDT
| Previous Close | 25.31 |
| Open | 25.70 |
| Bid | 25.14 x 1400 |
| Ask | 25.15 x 3200 |
| Day's Range | 25.09 - 25.41 |
| 52 Week Range | 24.89 - 60.75 |
| Volume | 5,233,446 |
| Avg. Volume | 10,014,032 |
| Market Cap | 30.671B |
| Beta (3Y Monthly) | 1.12 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -9.10 |
| Earnings Date | Oct 30, 2019 - Nov 4, 2019 |
| Forward Dividend & Yield | 1.60 (6.30%) |
| Ex-Dividend Date | 2019-08-20 |
| 1y Target Est | 29.26 |
- Business Wire
Cheez Ball Fans Rejoice - PLANTERS Announces Cheez Balls Are Here to Stay
Fans went nuts last year for the limited-time return of their favorite neon orange ’90s snack — PLANTERS Cheez Balls. Now, there’s even more reason to love this uniquely cheezy treat: PLANTERS Cheez Balls are here to stay. To celebrate everyone’s love for the cheeziest snack around, MR. PEANUT is giving fans one of their favorite parts of Cheez Balls – shakers filled with three cheezy ounces of Cheez Balls Cheez Powder.
- Financial Times
US regulator pulls disputed public statements from its website
A US financial regulator has removed sensitive public announcements from its website and been ordered to send top officials to testify in court as it faces blowback from an extraordinary legal settlement with two giant food companies. The Commodity Futures Trading Commission’s $16m fine and court-approved consent order against Kraft Heinz and Mondelez International last week resolved civil charges alleging the companies had rigged wheat prices. Less than a day later, the companies accused the agency of violating the order — specifically, an unusual provision censoring what the CFTC could say in public about the case — when it released three statements trumpeting the outcome.
- Motley Fool
Warren Buffett's Portfolio Yields a Big Surprise
It's something Buffett didn't do in the second quarter that's so shocking.
- Investopedia
Top Defensive Consumer Stocks for 2018
These three defensive consumer stocks can add stability to your portfolio. These stocks deal with staples and are less susceptible to market volatility.
- MarketWatch
Mondelez, Kraft settle wheat price manipulation case
The U.S. Commodity Futures Trading Commission on Thursday said Mondelez International Inc. and Kraft Heinz agreed to a $16 million penalty to settle a complaint about manipulation of wheat prices beginning in the summer of 2011.
- InvestorPlace
The 10 Biggest Losers from Q2 Earnings
Second-quarter earnings generally were strong. 75% of S&P 500 components, according to Factset Research, posted a positive bottom-line surprise for the quarter. But several stocks in the market -- among them Uber (NYSE:UBER) stock -- fell sharply after weak earnings reports that made them, in many investors' eyes, stocks to sell. * 10 Stocks Under $5 to Buy for Fall These 10 stocks all tumbled after second quarter releases. In some cases, those declines have led to attractive, if high-risk, bull cases. For others, the sell-offs seem like signals of more trouble ahead. In all cases, however, earnings reports mattered -- and will likely color the stories going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Uber (UBER)Source: Shutterstock To be fair, Uber didn't have a terrible quarter. Revenue, adjusted for a one-time driver bonus related to the company's IPO, still increased 26% year-over-year in Q2. And while UBER stock did fall almost 7% the day after earnings, it had gained over 8% the day of the after-close report, thanks to an earnings beat from rival Lyft (NASDAQ:LYFT).That said, UBER stock continued to decline in the following days, losing 21% of its value in just four sessions. That's over $16 billion in lost market value in less than a week. That's almost certainly the biggest loss on an absolute basis in the market this earnings season. UBER now trades at an all-time low, though admittedly it has only been public for just over three months.It's not at all clear that the decline is a buying opportunity. Uber remains unprofitable: its Adjusted EBITDA loss more than doubled year-over-year. UBER stock isn't cheap on a revenue basis, either. Its market capitalization remains over $56 billion, despite the fact that there are real long-term questions about the company's business model.In recent years, we have seen 'hot' IPOs tumble sharply: both Facebook (NASDAQ:FB) and Snap (NYSE:SNAP) come to mind. At least at the moment, UBER stock looks like it could follow that trend. Given that both of those stocks dropped more than 50% from their IPO price, UBER could have further downside ahead. 2U (TWOU)Source: Shutterstock Only one company saw a bigger post-earnings decline, on a percentage basis, then educational technology provider 2U (NASDAQ:TWOU). TWOU shares fell a stunning 65% in a single session the day after its second-quarter earnings report. That decline was topped only by Sanchez Midstream Partners LP (NYSEAMERICAN:SNMP), which dropped 69% and filed for bankruptcy less than a week later.Some investors saw the decline as an overreaction: TWOU shares have bounced 22% since. But there are real risks here.TWOU's guidance badly missed Street estimates on the bottom line -- and the company now is slowing its revenue growth as it focuses on controlling spending. One analyst called the report a "breaking of the company's model." And it's not like TWOU was soaring heading into the release. In fact, the stock posted a one-day drop of 25% after the Q1 release in May, and headed into second quarter earnings down almost 60% from its 52-week high. * 15 Growth Stocks to Buy for the Long Haul That said, for intrepid investors, there's a case to try and time the bottom. TWOU now trades at just 2x revenue. Its role in online education should drive some growth going forward, even if it will lag the 39% year-over-year increased posted in Q2. After the last two quarters, it would take a lot of gumption to own 2U stock into another earnings report. But perhaps, at least, TWOU can't perform much worse next time around. Kraft Heinz (KHC)Source: Shutterstock The disastrous run continued for Kraft Heinz (NASDAQ:KHC) in the second quarter. KHC shares fell 8.6% after earnings and tacked on another 6.1% decline the following day. KHC trades at an all-time low, and from both a short- and long-term standpoint, it's not difficult to see why.Q2 was yet another disappointing quarter. Sales declined 1.5% year-over-year on an organic basis, including a nearly 2% drop in the U.S. Adjusted EBITDA fell 19%; adjusted EPS dropped 23%. And those numbers are a reflection of a longer-term strategy that simply isn't working.3G Capital, with the help of Warren Buffett's Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B), put Kraft and Heinz together, while planning to follow 3G's "zero-based budgeting" strategy. That strategy instead has starved Kraft Heinz brands of needed marketing and innovation spend, leading the company to underperform in an already-difficult consumer packaged goods space.There's a case to bet on a turnaround here. I made such a case at the beginning of the year, and many hedge funds have been buyers of late. But KHC's new CEO seemed to suggest no improvements were on the way any time soon -- and the crushing debt load created (in part) by the merger can continue to weigh on the equity here. It may seem incredible, but bond markets now reflect a not-insignificant chance that KHC stock goes to zero. Any investor buying KHC for a turnaround -- or its dividend -- should keep that in mind. GoPro (GPRO)Source: Shutterstock In recent years, investors have fled hardware manufacturers like GoPro (NASDAQ:GPRO). Second quarter earnings reports across the group prove why -- and will make it very difficult for the market to trust the sector any time soon.For GoPro, Q2 numbers weren't that bad. Revenue actually increased roughly 3% year-over-year, though the Street was looking for growth almost double that. Management forecast a strong second half and sounded an optimistic tone toward next year. Meanwhile, the midpoint of EPS guidance suggests GPRO stock trades at a roughly 10x P/E multiple.But investors weren't buying it -- literally. GPRO shares fell 13% after earnings. They're now just shy of an all-time low reached in December. And as I wrote last month, the short case here still seems to hold. GoPro has the action camera market mostly to itself; the problem is that the market simply isn't growing. Execution hasn't been great, and margins are somewhat thin. * 7 Safe Dividend Stocks for Investors to Buy Right Now And at a certain point, investors are going to tire of bidding GPRO up on hopes of a turnaround -- only for the company to disappoint and re-test the lows. In fact, it's likely that most investors already have. Fitbit (FIT)Source: Shutterstock There are more than a few parallels between Fitbit (NYSE:FIT) and GoPro. Both stocks soared after their IPOs (though GPRO stock saw a much bigger bounce), only to reverse to steep and almost uninterrupted declines. The two companies have been undertaking various turnaround strategies -- new products, cost-cutting, etc. -- for years now, none of which really has taken hold. And both firms are looking to subscription revenue as a way to offset the margin pressure on hardware sales.Fitbit, however, has it worse at the moment, in a number of ways. Its stock isn't just challenging an all-time low: it closed at one on Wednesday. FIT dropped 21% following earnings, against the 13% decline in GPRO, after the Q2 release came with a full-year guidance cut. And unlike GoPro, Fitbit isn't a market leader anymore: Apple (NASDAQ:AAPL) clearly has taken the smartwatch crown, with Garmin (NASDAQ:GRMN) also a legitimate player.For GPRO, there is at least is a case that the stock is cheap enough that even some growth can, at some point, drive the stock higher. FIT stock doesn't even have that case. The company does have a ton of cash: some $565 million (including marketable securities) at the end of the second quarter, against a market capitalization below $800 million. But it's also burning some of that cash, with even Adjusted EBITDA guided to a loss for the full year.Given market share erosion, it's hard to see how that reverses. The same is true of Fitbit stock. Arlo Technologies (ARLO)Source: Shutterstock For IP camera manufacturer Arlo Technologies (NYSE:ARLO), GPRO and FIT should have served as cautionary tales. ARLO stock has somewhat followed the same trend as its hardware peers, but the gains were smaller and the declines came much sooner.ARLO now has fallen 82% from its IPO price a little over a year after it debuted on the public markets. That includes an 18% decline after second quarter earnings earlier this month.It could get worse. Given that Arlo was spun off from NETGEAR (NASDAQ:NTGR) on the last day of 2018, it likely can't sell itself before 2021 without creating an enormous tax liability. But the company, at this point, may not be able to survive on its own. It's guiding for an adjusted operating loss in the range of $100 million this year. If that guidance is hit, Arlo will end the year with roughly $100 million in cash.In other words, performance needs to get better -- and quickly -- or else solvency becomes a real concern next year. But sales are declining as is and even that full-year guidance looks at risk. Arlo needs a huge Q4 just to hit its full year outlook -- and must then keep that momentum going into 2020. * 7 Stocks Under $7 to Invest in Now That might be difficult. Competition remains intense. Arlo still is discounting heavily: adjusted gross margin is guided to just 9-12% in the third quarter. The company is relying on the launch of its Ultra 4K camera and a video doorbell to drive sales growth -- but it has basically zero room for error. Arlo needs a huge holiday season this year, or the stock might be at zero before the next one. Groupon (GRPN)Source: Shutterstock It's not just hardware companies that turn into busted IPOs. Groupon (NASDAQ:GRPN) doesn't sell physical products, but it feels a bit like those hardware stocks.GRPN, too, is testing an all-time low after a disappointing earnings report undercut turnaround hopes. It is looking for subscription revenue with the launch of its Groupon Select offering.Groupon at least is profitable -- and has a fortress balance sheet, with almost $400 million in cash net of debt. But revenue is declining, and cost-cutting opportunities likely limited at this point. And the broad problem that I highlighted in April remains. This isn't really a 'tech' company -- not with some 2,000 salespeople on staff. The business model runs through the Internet, but it's not a high-margin platform story like Match Group (NASDAQ:MTCH) or Etsy (NASDAQ:ETSY).Instead, it's a tough, low-margin, labor-intensive business with high customer turnover. It's a business that simply hasn't been able to drive consistent growth. Until that changes, GRPN stock is going to stay cheap. Align Technology (ALGN)Source: Shutterstock A year ago, Align Technology (NASDAQ:ALGN) could do no wrong. Shares of the Invisalign manufacturer were soaring in a hot market. Valuation was a concern, admittedly. But ALGN stock seemed like the kind of stock where investors would keep paying up for its growth.A jittery market ended the rally at the beginning of October. Soft Q4 guidance given with Q3 earnings later that month sent ALGN tumbling. The stock lost more than half its value in the fourth quarter alone. But a new year led to a new rally: by early May, Align Technology stock had risen 58% in 2019.Those gains now are gone. ALGN has fallen 47% and has reversed to a 16% loss for this year. Once again, it was weak guidance that tripped up the stock, as the company cited a slowdown in growth in China and choppy performance among teens in the U.S.ALGN is tempting on the decline. This still seems to be a wonderful business model. Growth should continue, particularly in developing markets. Management remained confident after Q2 that revenue in China would rebound. And while competition is a risk, Align seems the leader in clear aligners -- which should take more share from traditional braces over time. * 7 Stocks to Buy With Over 20% Upside From Current Levels The one catch is that the stock simply isn't that cheap yet. ALGN still trades at 27x 2020 consensus EPS. With fears about the Chinese economy dominating the market, and a "falling knife" stock chart, even investors intrigued by the stock might do well to show some patience. Farfetch (FTCH)Source: nikkimeel / Shutterstock.com There are two common drivers of big downward moves. A company can miss earnings expectations -- or it can make an acquisition with which investors disagree. Luxury marketplace Farfetch (NYSE:FTCH) did both this month -- and its shares declined 44% as a result.The company is spending $675 million to acquire New Guards Group, a so-called "brand platform" that has launched luxury labels. That buy was announced the same day as Q2 results and lowered full-year guidance for GMV (gross merchandise value). So disappointing was Farfetch's outlook that RealReal Inc (NASDAQ:REAL), a used luxury good marketplace, fell 23% in sympathy.FTCH shares have managed to hold a bottom since, however, even in a market seemingly primed to punish luxury sellers. And there's a case that investors can buy an attractive growth story at a much cheaper price. Oppenheimer still sees a clean double. FTCH stock now trades at a more attractive ~4x multiple to 2020 revenue estimates. And the New Guards acquisition is a part of a strategy for Farfetch to develop and sell its own products, in addition to those of other boutiques.In a market where growth stocks still aren't cheap, or close, FTCH looks at least reasonably valued by comparison. And if management's strategy is on point, the post-Q2 declines in retrospect will look like a massive buying opportunity. DXC Technology (DXC)Source: Shutterstock There may not be a better stock for contrarian investors right now than DXC Technology (NASDAQ:DXC), the result of a merger of Computer Sciences Corporation with assets from Hewlett Packard Enterprise (NYSE:HPE).DXC shares are down roughly two-thirds from all-time highs reached in September. The stock trades at less than five times the low end of updated 2019 adjusted EPS guidance -- and barely four times the high end. There are worries, notably in the consulting business. But a sharp sell-off of late, including a 30% one-day decline after second quarter earnings, seems like an overreaction.That said, investors do need to be careful. Selling pressure hasn't let up yet, though weaker broad markets are a factor. DXC does have a decent amount of debt: almost $10 billion against a market capitalization now just above $12 billion. DXC is cheap relative to guidance, but that guidance was cut sharply after the second quarter and could see another reduction before the year is out. Contrarian investing in this market has been difficult, if not dangerous.Still, a sub-5x P/E multiple is attractive. There should be room for cost cuts going forward. Investors need to understand just what they're getting into -- but it's hard to find much in the way of cheaper stocks than DXC.As of this writing, Vince Martin is long shares of NETGEAR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post The 10 Biggest Losers from Q2 Earnings appeared first on InvestorPlace.
- Reuters
UPDATE 2-CFTC says Kraft, Mondelez to pay $16 million in wheat price manipulation case
The U.S. Commodity Futures Trading Commission (CFTC) said on Thursday Kraft Heinz Co and Mondelez International Inc will have to pay $16 million in penalty regarding a wheat manipulation case that dates back to 2015. Kraft Heinz, which was Kraft Foods until 2015, and Mondelez bought $90 million of December 2011 wheat futures, which gave the companies a dominant position in the market, even though they never intended to take possession of the grain, the CFTC said.
- Reuters
CFTC says Kraft, Mondelez to pay $16 million in wheat price manipulation case
Kraft Heinz, which was Kraft Foods until 2015, and Mondelez bought $90 million of December 2011 wheat futures, which gave the companies a dominant position in the market, even though they never intended to take possession of the grain, the CFTC said. The move sent a false signal that the companies had demand for wheat and caused an artificial price fluctuation that earned them more than $5 million in profits, the CFTC said.
- Zacks
Can United Natural Gain on Strong Brands Despite High Costs?
United Natural (UNFI) gains from strong brands. It is on track with cost-saving efforts. However, rising costs and adverse consumer mix are hurdles.
- Financial Times
Food groups’ fight over wheat manipulation re-erupts
A long-running legal tussle between the food companies Mondelez International and Kraft Heinz and a US market regulator reignited in fury, just hours after it had been formally concluded by a federal judge. The Commodity Futures Trading Commission extracted a $16m penalty from Mondelez over allegations it and Kraft manipulated the US wheat futures market when they were a single company in 2011. Mondelez and Kraft, makers of supermarket brands such as Oreo cookies and Philadelphia cream cheese, said they would immediately return to court to contest the way the regulator announced the deal.
- Investor's Business Daily
Warren Buffett's Berkshire Hathaway Boosts Stakes In Amazon, Banks
Warren Buffett boosted his stakes in Amazon and top banks, as Berskhire Hathaway filed its latest report on quarterly holdings.
- Market Realist
Kraft Heinz Stock: Avoid It despite Low Valuation
Kraft Heinz stock has fallen about 16% since it reported its first-half results on August 8. The stock has fallen about 40% on a YTD basis as of Tuesday.
- Zacks
Top Research Reports: Amazon, Caterpillar, Vertex & More
Top Research Reports: Amazon, Caterpillar, Vertex & More
- Zacks
HubSpot, Kraft Heinz, CNBS, Canopy Growth, Aurora Cannabis and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
HubSpot, Kraft Heinz, CNBS, Canopy Growth, Aurora Cannabis and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
- American City Business Journals
Struggling Kraft Heinz is cutting 400 jobs
In the aftermath of announcing dismal 2019 first-half results, Kraft Heinz says it's cutting jobs.
- TheStreet.com
Kraft Heinz to Cut 400 Jobs, Booking $27 Million Costs
Kraft Heinz said in a filing with the Securities and Exchange Commission that as of March 31, it planned to eliminate about 400 jobs, requiring it to book first-quarter expenses of $27 million. Kraft Heinz employed 38,000 people at the end of 2018. Berkshire Hathaway , the Omaha investment group controlled by Warren Buffett, holds more than a quarter of Kraft Heinz stock.
- Barrons.com
Kraft Heinz Stock Falls After Finally Filing Quarterly Reports
On Tuesday, Kraft filed its 10-Qs for both the first and second quarter. Kraft had delayed filing—as well as reporting first quarter earnings—this spring as it worked through internal issues.
- Benzinga
Today's Pickup: Kraft Taps FourKites' Facility Manager To Cut Dwell Times
The use of predictive technology has transformed delivery businesses, but now it is starting to revolutionize warehouse operations. The Kraft Heinz Company (NASDAQ: KHC) has put into use a new solution from FourKites that it believes will significantly cut down on dwell time while also lowering detention costs and improving operational performance across its facilities. Facility Manager links transportation and warehousing systems, providing a real-time look at data that provides predictive estimate time of arrival of vehicles to yards and distribution centers.
- MarketWatch
Kraft Heinz expects to cut 400 workers as part of restructuring
Kraft Heinz Co. said in a filing that it expects to cut 400 workers as part of a restructuring program that's focused on headcount and factory closures and consolidations. As of the first quarter of 2019, 100 jobs had been eliminated. The restructuring programs incurred $27 million in expenses for the three months ending March 30, 2019, including $1 million in severance and employee benefit costs and $2 million in other exit costs. Kraft Heinz has had to restate financial statements going back to 2016, and has announced billions of dollars worth of impairment charges in the process. Kraft Heinz stock has sunk 55.6% over the past year while the S&P 500 index is up 2.2% for the period.
- Motley Fool
Should You Buy Kraft Heinz Stock at Its All-Time Low?
The packaged-foods giant’s headaches won’t end anytime soon.
- Zacks
Kraft Heinz (KHC) Stock Continues to Fall: When Will the Bleeding Stop?
Kraft Heinz (KHC) shares closed down 0.53% through intraday trading Monday as the stock continues to plummet following the release of its earnings report.
- InvestorPlace
7 Safe Dividend Stocks for Investors to Buy Right Now
After several years of people favoring growth names over value and dividend stocks, sentiment has switched gears. That's because people are looking for sources of yield again. With the Federal Reserve cutting rates once more, the safe sources of fixed-income yield are drying up.10-year treasury bond yields, for example have gotten cut nearly in half, from more than 3% at their recent peak to 1.7% now. Investors fear that yields will go even lower yet. It's not hard to see why. Just look at yields in places like Germany and Japan -- they're actually below zero for 10-year bonds. Some people are suggesting that the United States could get there too the next time a recession hits.Against that backdrop, conservative dividend stocks look like better and better alternatives to bonds for income investors. We saw a similar trend play out in 2015-16, with rate sensitive stocks soaring. Then, those gave way as the economy picked up steam and investors rushed back into big growth names like the FAANG stocks -- Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for a Dovish Fed Now, however, there's a sense that another sentiment shift may be upon us. The trade war in particular has taken a lot of punch out of the growth stocks. That makes it a great time to be looking for more conservative dividend stocks to buy today. Dividend Stocks to Buy: Exxon Mobil (XOM)Source: Shutterstock Dividend Yield: 4.9%After this latest round of selling, energy stocks are basically flat for the year, with the leading sector exchange-traded fund (ETF) trading back to where it was at the beginning of January. If you're a short-term trader, energy stocks have been a terrible place to be this year. But for dividend investors, the longer this slump drags on, the better.Take Exxon Mobil (NYSE:XOM) for example. XOM stock has gone essentially nowhere since 2005. The combination of plunging natural gas prices and the renewed weakness in crude oil scared everyone out of the sector. But with that mass departure comes opportunity.XOM stock is now nearly yielding 5%. That's its highest level since the early 1990s. It's hard to overstate how pessimistic folks have gotten on oil and gas. But for the big dogs with great balance sheets, like Exxon, this is their time to shine. They can buy up assets from struggling and bankrupt rivals for cents on the dollar, and wait for the cycle to turn. Exxon's management is now planning for aggressive growth at the same time, so many other firms are having to pull back. In fact, Exxon is looking to double cash flow and earnings over the next five years. If it can do so, Exxon stock stock will soar. And you get a more than 4.5% dividend yield while you wait. BP (BP)Source: Shutterstock Dividend Yield: 6.6%Exxon isn't the only energy stock worth considering thanks to the latest sell-off in energy shares. Dividend investors should also take a look at BP (NYSE:BP) stock at these prices. BP got itself into hot water ages ago with the Deepwater Horizon tragedy, and the stock has underperformed ever since then.But the company's liabilities associated with that are almost gone now. Meanwhile, the company has greatly cut costs, making itself profitable even in current low-energy-pricing conditions. * 7 Stocks Under $7 to Invest in Now Skeptics had suggested that BP stock would have to cut its dividend to get through this difficult period for oil and gas companies. Instead, BP was able to maintain its juicy yield and even give us a small dividend hike recently. It's worth remembering that the United Kingdom and U.S. have a tax arrangement that ensures investors pay no foreign dividend taxes on their British share holdings. This makes BP a nice option for dividend investors seeking to diversify their income streams beyond American sources.Finally, it's worth noting that a short-term bottom could be approaching for both Exxon and BP stocks here. That's because Saudi officials said Wednesday that they are considering options to support the price of oil here near the $50/barrel level for West Texas crude. Any meaningful support for the oil market could get XOM and BP shares moving higher again in coming weeks. Kraft Heinz (KHC)Source: Shutterstock Dividend Yield: 6%It has been a great year for consumer staples stocks. In general, the sector has moved sharply higher, and many stalwarts like Hershey (NYSE:HSY) are up 30% or more and hitting new all-time highs. However, not all staples stocks have blasted off.For example, there is Kraft Heinz (NASDAQ:KHC). Kraft Heinz suffered an unbelievable decline from a peak of $90 to $27 in just a few years. Despite involvement from investing legends including Warren Buffett and 3G Capital, Kraft Heinz imploded thanks to failing growth prospects and excessive leverage. Its latest underwhelming quarterly results have KHC stock in retreat yet again.But don't count out the condiments and packaged foods maker just yet. The company has sold off non-core assets and adjusted its capital allocation to shore up the balance sheet. Management is changing its branding strategy as well. And at these depressed prices, KHC stock is undervalued even compared to other struggling sector laggards, to say nothing of industry leaders like Hershey and McCormick (NYSE:MKC).Even assuming Kraft Heinz only gets back to comparable enterprise value/EBITDA and price-to-earnings ratios with other lower-tier packaged foods stocks, it should still trade back up to $40 from the current $27 valuation.And at this price, KHC stock yields 6%. In a world that is increasingly starved for meaningful yield, Kraft Heinz will become irresistible to income investors. As the negative press fades, Kraft Heinz stock will recover, delivering both big income and stock price upside for investors willing to step in at this juncture. Hormel Foods (HRL)Source: Shutterstock Dividend Yield: 2%Another solid choice in the staples industry at this point is Hormel Foods (NYSE:HRL) stock. Forget about vegan meat for a second, there's way more dividend potential in the real stuff. Hormel is known for its legacy SPAM brand, but it makes a great assortment of lunchmeats, bacon and canned meals as well. It has acquired natural and organic meat brands to appeal to millennial consumers in recent years. It has also diversified in organic nut butters, guacamole, Mexican salsas and other more youth-orientated products.Hormel stock enjoyed a tremendous run the last time interest rates plummeted a few years ago; HRL stock shot up 50% in six months. Since then, Hormel has traded sideways, however, as investors moved back out of dividend stocks. In fact, HRL is down 10% from its 2016 peak while earnings are up 25% over the same period. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates With investors piling back into yield plays, however, Hormel Foods should soar to new all-time highs. The African swine fever has been a bump in the road. Higher pork prices have hurt margins. But as pricing reverts to normal in 2020, Hormel's earnings per share should soar above $2, supporting a $50 share price based on its historical median earnings ratio.Hormel is the lowest-yielding stock on this list, at 2%. But it is a dividend king with more than 50 years of consecutive dividend hikes. It has consistently grown its dividend (and its earnings) at more than 10% per year for decades now. This means that investors get a starting yield significantly higher than in bonds, with rapid increases to their income stream over time. With dividend aristocrats back in style, HRL stock is heading to new all-time highs. Molson Coors Brewing (TAP)Source: Shutterstock Dividend Yield: 4.4%Turning from food to beer, we have Molson Coors Brewing (NYSE:TAP) stock. The big macro-brewers have seen their stocks implode in recent years based on craft beer fears. And those were valid fears. But note the past tense. In 2018, U.S. craft beer grew just 3% overall, with many of the leading craft brewers showing outright decline in production. Arguably, craft beer over-expanded, and has now lost its cutting-edge trendiness.Meanwhile, there's still plenty of people that like macro beers, along with cheaper brews in general. The major beer companies still control more than 80% of the American market after all. And Molson Coors plays to both lanes; it owns leading craft brands such as Blue Moon to complement its mainstream holdings.Why buy TAP stock now though? For one thing, it's at multi-year lows. The North American beer market overall has been weak, so while the craft threat is fading, overall performance has still been rather modest. That said, Molson Coors has cut costs aggressively. This just allowed it to unveil a massive 39% dividend hike. Management didn't get the memo that Molson's business is in trouble, despite the sinking stock price. With that huge dividend hike, TAP stock is now yielding 4.4%, which makes it the highest-yielder in the U.S. beer and liquor space. With recession fears mounting, investors will warm up to this recession-proof income play soon. Wells Fargo (WFC)Source: Shutterstock Dividend Yield: 4.4%Investors hate bank stocks right now. In fact, other than energy, there's little that is more disliked at the moment. And with that comes opportunity. If you're bearish on the economy and think we're heading into a recession tomorrow, there's a good reason to avoid banks today; but the whole stock market is probably overvalued in that case. If things turn back up even slightly, however, banking shares should roar back.Why's that? Because interest rates have plummeted so rapidly since last year, the bond market is now pricing in the equivalent of six Fed rate cuts to the long end of the curve. If the economy continues performing reasonably well, the Fed will cut significantly fewer than six times in practice. As the rate curve heads back to more normal levels from current extremes, banks will benefit. Right now, people are pricing in a massive drop in profits for the industry going forward, but this could reverse on a dime. * 10 Cyclical Stocks to Buy (or Sell) Now Who wins? Wells Fargo (NYSE:WFC) stock is one obvious winner. Investors have shunned the bank since the account scandals a few years ago. But the bank has thrown out old management and moved on. Meanwhile, the stock price has gone nowhere for many years as capital piles up. This is allowing it to go on an aggressive shareholder return plan now.Wells Fargo is now paying a more than 4% dividend yield. On top of that, the company has authorization to repurchase more than 10% of its total outstanding float over the next year. Add it up, and the bank is offering a shareholder yield of nearly 15%. Throw in any improvement in the economic outlook, and we could see WFC stock rise 25% over the next year and pay a generous dividend along the way. PacWest Bancorp (PACW)Source: Shutterstock Dividend Yield: 7%The other banking dividend stock to consider today is PacWest Bancorp (NASDAQ:PACW), which offers a just over 7% dividend yield at the moment.Headquartered in Los Angeles, PacWest is a major player in the California market and currently sports a near $4.2 billion market cap. That puts it in a sweet spot, size-wise, where it may still be a buy out candidate, but it is large enough to manage the rising costs of regulation and banking technology costs.Despite the horrid state of the California housing market in 2008, PacWest survived the crisis. In fact, its shares never came close to zero during the panic. The bank has come out stronger, and is now generating record profits. Thanks to the corporate tax cuts in particular, PACW stock is now at a cheap P/E ratio of just 9.2 times its trailing earnings.At the time of this writing, Ian Bezek owned BP, PACW, WFC, KHC, MKC, HSY, HRL, and XOM stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 9 High-Growth Stocks to Buy Now for Monster Returns * 7 Healthy Dividend Stocks to Buy for Extra Stability The post 7 Safe Dividend Stocks for Investors to Buy Right Now appeared first on InvestorPlace.
- Barrons.com
Kraft Heinz Stock Is Slumping Because Bad Earnings News Might Just Be the Start
Kraft Heinz stock was slumping after BMO Capital Markets lowered its price target on the packaged food giant, following the company’s underwhelming earnings report for the first half of the year.
