|Bid||62.44 x 1200|
|Ask||64.07 x 1000|
|Day's Range||62.55 - 63.38|
|52 Week Range||54.11 - 90.38|
|PE Ratio (TTM)||6.98|
|Earnings Date||Aug 3, 2018|
|Forward Dividend & Yield||2.50 (3.88%)|
|1y Target Est||67.62|
Scott Rothbort, Lake View Asset Management founder, discusses the impact on U.S. businesses and consumers of Canada's controversial 10-percent tariff on ketchup.
CNBC's Meg Tirrell reports on Kraft Heinz's response to tariffs being slapped on its products by Canada, in retaliation to the Trump administration's tariffs on Canadian products.
As we’ve already seen, J.M. Smucker’s (SJM) bottom line is expected to take a hit from rising interest costs. Retaliatory tariffs imposed by Canada are also expected to hurt the bottom line of packaged food companies, including J.M. Smucker, Campbell Soup (CPB), and Kraft Heinz (KHC). Recently, JPMorgan lowered its earnings estimate for J.M. Smucker, stating that among the major packaged food manufacturers, it’s most vulnerable to the recently imposed Canadian surtax.
Short interest is low for KHC with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices.
Mick Jagger famously could get no satisfaction. UBS last week published its latest analysis of 23,000 reviews posted on Glassdoor for 19 consumer staples companies between 2015-2018. The happiest employees are to be found among a group of European and US staples companies.
Kraft Mac & Cheese, a staple on American tables for over 80 years, has alternated featuring a spoon and fork on the front of its iconic “blue box.” But a strong debate has been stirring on the brand’s Twitter channel, and the brand has asked America to decide which utensil should have a place on the box in the future. Fans have until the morning of National Mac and Cheese Day on July 14 to vote if they prefer to eat their Kraft Mac & Cheese with a spoon or a fork. To place your vote, visit @kraftmacncheese on Twitter.
Recently, J.P. Morgan lowered its EPS estimates for J.M. Smucker (SJM) due to trade war tensions. J.P. Morgan expects Canada’s retaliatory tariffs to hurt J.M. Smucker the most among all food companies. The investment bank now estimates SJM’s EPS to be $8.29 and $8.83 in fiscal 2019 and fiscal 2020, respectively, down from earlier estimates of $8.56 and $9.15.
Short interest is low for KHC with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Over the last one-month, outflows of investor capital in ETFs holding KHC totaled $520 million.
The Kraft Heinz Company will release its second quarter financial results on Friday, Aug. 3, 2018, before the market opens. Kraft Heinz will host a conference call at 8:30 a.m.
The pullback in the stocks of packaged food companies has resulted in lower valuations for these companies. The stocks of most food companies are trading well below their historical averages. Despite their valuation multiples, investors haven’t budged due to sales and margin headwinds that are likely to affect the stocks.
The stocks of Kraft Heinz (KHC), Campbell Soup (CPB), Tyson Foods (TSN), and J.M. Smucker (SJM) are reeling under pressures from soft demand and higher costs related to commodities and logistics. To add to their woes, retaliatory tariffs imposed by China, Mexico, Canada, and the European Union could further dent their financials. In retaliation to President Trump’s higher tariffs on the imports of certain steel and aluminum products, Canada imposed 10% tariffs on soups, broths, and tomato ketchup and sauces, which could likely affect the financials of Campbell Soup and Kraft Heinz.
Food companies have long served as a source of recession-proof profits and increasing dividends. Kellogg’s has responded to this and Kellogg stock has seen modest success. While not a dividend aristocrat, Kellogg stock, and peers such as Kraft Heinz Co (NASDAQ:KHC), General Mills, Inc. (NYSE:GIS), and Campbell Soup Company (NYSE:CPB), have enjoyed a decades-long history of high, consistent dividend payments.
Northrop Grumman is pursuing a Japanese jet fighter contract that may put it in competition with US rival Lockheed Martin, according to sources who spoke to Reuters. Echostar is now seeking talks with Immarsat after its $3.2 billion bid to buy the British satellite firm was rebuffed. Ford reported a 38 percent drop in China vehicle sales in June, capping a first half sales slump.
The list for new tariffs is also likely to include frozen fish, raisins and adhesive bandages, according to the report. The European Union is preparing a new list of duties against the U.S. in case President Donald Trump moves ahead with tariffs on European cars, the Financial Times reported Friday citing anonymous officials in the region.
Anheuser-Busch InBev (NYSE:BUD) has had a rough year. It’s been a difficult time for consumer staples stocks in general, with the other big 3G Capital play, Kraft Heinz Company (NYSE:KHC), also tanking in recent months. This has left investors wondering: Is the 3G takeover-and-cut-costs model dead?
The United States and Canada are embroiled in a developing trade war — some call it "a ketchup war" — and McCormick & Co. Inc. is caught in the crosshairs. After President Donald Trump's administration slapped new tariffs on Canadian steel and aluminum imports, Canada responded with tariffs of its own. On Canada Day, Prime Minister Justin Trudeau placed a 25 percent tariff on U.S. steel.
Jell-O is rolling out a new line of Jell-O gelatin toy kits to encourage kids — and their parents if so inclined — to play more. Jell-O is a unit of Kraft-Heinz (NASDAQ: KHC), based in Chicago and Pittsburgh. Noted Katy Marshall, marketing and sales lead for Springboard, a new Kraft Heinz platform dedicated to nurturing, scaling and accelerating growth of disruptive food brands: "We want to inspire parents and kids to set their imagination free with a line of gelatin toys celebrating free play and fun." Yeah, it looks like Jell-O is about to become a disruptive food brand.
Farmers and food producers are in the cross hairs of a global trade conflict that shows no signs of ending anytime soon, and things are about to escalate in a big way with new tariffs on soybeans, dairy and pork.