In the latest trading session, Kraft Heinz (KHC) closed at $22.47, marking a -1.27% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. At the same time, the Dow added 1.73%, and the tech-heavy Nasdaq lost 0.09%.
The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen a decrease of 1.34% over the last month, not keeping up with the Consumer Staples sector's loss of 1.05% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is forecasted to report an EPS of $0.53, showcasing a 23.19% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.12 billion, down 3.59% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $24.43 billion. These totals would mark changes of -20.38% and -2.06%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Kraft Heinz. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 1.41% higher 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 11.02. This indicates a discount in contrast to its industry's Forward P/E of 12.7.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Kraft Heinz Company (KHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).