Kraft Heinz (KHC) Gains As Market Dips: What You Should Know

In the latest close session, Kraft Heinz (KHC) was up +1.36% at $22.34. The stock outperformed the S&P 500, which registered a daily loss of 0.4%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.73%.

The stock of processed food company with dual headquarters in Pittsburgh and Chicago has fallen by 10.44% in the past month, leading the Consumer Staples sector's loss of 11.7% and undershooting the S&P 500's loss of 7.34%.

The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company is expected to report EPS of $0.5, down 19.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.89 billion, down 1.86% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.04 per share and revenue of $24.51 billion, indicating changes of -21.54% and -1.73%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Kraft Heinz holds a Zacks Rank of #4 (Sell).

With respect to valuation, Kraft Heinz is currently being traded at a Forward P/E ratio of 10.82. This signifies a discount in comparison to the average Forward P/E of 13.08 for its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 20% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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

This article originally published on Zacks Investment Research (zacks.com).

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