In the latest close session, Kraft Heinz (KHC) was up +2.53% at $27.14. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had gained 0.04% in the past month. In that same time, the Consumer Staples sector lost 0.8%, while the S&P 500 gained 4.07%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company plans to announce its earnings on July 30, 2025. The company is predicted to post an EPS of $0.64, indicating a 17.95% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.26 billion, indicating a 3.34% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.57 per share and a revenue of $24.97 billion, indicating changes of -16.01% and -3.38%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 an unchanged state. Kraft Heinz is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 10.29. For comparison, its industry has an average Forward P/E of 16.17, which means Kraft Heinz is trading at a discount to the group.
We can also see that KHC currently has a PEG ratio of 3.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food – Miscellaneous was holding an average PEG ratio of 1.63 at yesterday's closing price.
