Kraft Heinz (KHC) Gains As Market Dips: What You Should Know

In the latest trading session, Kraft Heinz (KHC) closed at $37.05, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 7.57% over the past month. This has lagged the Consumer Staples sector's loss of 1.05% and the S&P 500's loss of 3.32% in that time.

Investors will be hoping for strength from Kraft Heinz as it approaches its next earnings release. In that report, analysts expect Kraft Heinz to post earnings of $0.68 per share. This would mark a year-over-year decline of 12.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.4 billion, down 3.27% from the year-ago period.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $25.61 billion. These results would represent year-over-year changes of -8.19% and -1.66%, respectively.

It is also important to note the recent changes to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Kraft Heinz is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 13.63. This represents a discount compared to its industry's average Forward P/E of 17.69.

We can also see that KHC currently has a PEG ratio of 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.47 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 158, 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.