In the latest close session, Kraft Heinz (KHC) was down 1.5% at $24.92. The stock trailed the S&P 500, which registered a daily loss of 0.28%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.2%.
The stock of processed food company with dual headquarters in Pittsburgh and Chicago has risen by 7.98% in the past month, leading the Consumer Staples sector's gain of 4% and the S&P 500's gain of 1.64%.
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 $0.53, down 23.19% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.14 billion, showing a 3.37% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $24.43 billion, which would represent changes of -20.38% and -2.04%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Kraft Heinz has a Forward P/E ratio of 12.24 right now. For comparison, its industry has an average Forward P/E of 13.03, which means Kraft Heinz is trading at a discount to the group.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Kraft Heinz Company (KHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).