Kraft Heinz (KHC) Declines More Than Market: Some Information for Investors

In the latest close session, Kraft Heinz (KHC) was down 3.54% at $22.08. The stock trailed the S&P 500, which registered a daily loss of 1.36%. Elsewhere, the Dow lost 1.64%, while the tech-heavy Nasdaq lost 1.46%.

Shares of the processed food company with dual headquarters in Pittsburgh and Chicago have depreciated by 3.74% over the course of the past month, outperforming the Consumer Staples sector's loss of 5.57%, and lagging the S&P 500's loss of 1.76%.

Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company is expected to report EPS of $0.5, down 19.35% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.87 billion, indicating a 2.08% downward movement from the same quarter last year.

KHC's full-year Zacks Consensus Estimates are calling for earnings of $2.04 per share and revenue of $24.5 billion. These results would represent year-over-year changes of -21.54% and -1.77%, respectively.

Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. Currently, Kraft Heinz is carrying a Zacks Rank of #4 (Sell).

Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 11.24. This indicates a discount in contrast to its industry's Forward P/E of 13.27.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.

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Kraft Heinz Company (KHC): Free Stock Analysis Report

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