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Kraft Heinz (KHC) Stock Declines While Market Improves: Some Information for Investors

Kraft Heinz (KHC) closed the latest trading day at $32.54, indicating a -1.15% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.23%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.34%.

Coming into today, shares of the the processed food company with dual headquarters in Pittsburgh and Chicago had lost 8.17% in the past month. In that same time, the Consumer Staples sector lost 3.57%, while the S&P 500 gained 3.96%.

The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 6.33% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.63 billion, indicating a 1.42% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $26.65 billion, which would represent changes of +1.34% and +0.05%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. As of now, Kraft Heinz holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 10.91. This represents a discount compared to its industry's average Forward P/E of 17.13.

It is also worth noting that KHC currently has a PEG ratio of 2.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 2.04.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Kraft Heinz Company (KHC) : Free Stock Analysis Report

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Zacks Investment Research