Kraft Heinz (KHC) closed at $22.42 in the latest trading session, marking a -2.78% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.02% for the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had gained 2.13% over the past month, outpacing the Consumer Staples sector's loss of 3.19% and the S&P 500's gain of 0.63%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company's upcoming EPS is projected at $0.5, signifying a 19.35% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.89 billion, down 1.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $24.46 billion, which would represent changes of -21.54% and -1.93%, respectively, from the prior 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. At present, Kraft Heinz boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 11.33. Its industry sports an average Forward P/E of 13.77, so one might conclude that Kraft Heinz is trading at a discount comparatively.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 16% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Kraft Heinz Company (KHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).