Kraft Heinz (KHC) closed the most recent trading day at $22.03, moving -3.46% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq depreciated by 1.33%.
The processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 4.08% in the past month, falling short of the Consumer Staples sector's loss of 1.01% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 24.64% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.12 billion, down 3.59% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.07 per share and revenue of $24.43 billion, indicating changes of -20.38% and -2.06%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Kraft Heinz possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 11.05. For comparison, its industry has an average Forward P/E of 13.82, 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 203, which puts it in the bottom 17% 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.
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).