Kraft Heinz (KHC) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Kraft Heinz (KHC) reached $35.11, with a -0.74% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.
The the stock of processed food company with dual headquarters in Pittsburgh and Chicago has fallen by 0.17% in the past month, lagging the Consumer Staples sector's gain of 2.54% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 2.78% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.44 billion, reflecting a 2.05% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.02 per share and a revenue of $26.15 billion, representing changes of +1.34% and -1.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Kraft Heinz is currently a Zacks Rank #3 (Hold).
In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 11.72. This signifies a discount in comparison to the average Forward P/E of 17.97 for its industry.
Also, we should mention that KHC has a PEG ratio of 3.46. 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 average PEG ratio for the Food - Miscellaneous industry stood at 2.84 at the close of the market yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 138, finds itself in the bottom 46% echelons 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.
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