Kraft Heinz (KHC) closed the most recent trading day at $25.27, moving -3.03% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.71%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 4.51% in the past month. In that same time, the Consumer Staples sector lost 3.28%, while the S&P 500 gained 4.26%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 22.67% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.27 billion, indicating a 1.72% decline compared to the corresponding quarter of the prior year.
KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.58 per share and revenue of $25.24 billion. These results would represent year-over-year changes of -15.69% and -2.35%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% decrease. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Kraft Heinz is currently being traded at a Forward P/E ratio of 10.11. This signifies a discount in comparison to the average Forward P/E of 16.05 for its industry.
Also, we should mention that KHC has a PEG ratio of 3.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food – Miscellaneous was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Food – Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 30% of all 250+ industries.
