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Kraft Heinz (KHC) Stock Falls Amid Market Uptick: What Investors Need to Know

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Kraft Heinz (KHC - Free Report) closed at $29.10 in the latest trading session, marking a -0.07% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.

Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 7.14% over the past month, lagging the Consumer Staples sector's loss of 0.69% and the S&P 500's loss of 3.59% in that time.

The upcoming earnings release of Kraft Heinz will be of great interest to investors. In that report, analysts expect Kraft Heinz to post earnings of $0.60 per share. This would mark a year-over-year decline of 13.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $6 billion, indicating a 6.4% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $24.98 billion, which would represent changes of -12.75% and -3.35%, respectively, from the prior year.

Investors might also notice 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% downward. As of now, Kraft Heinz holds a Zacks Rank of #4 (Sell).

In the context of valuation, Kraft Heinz is at present trading with a Forward P/E ratio of 10.89. This denotes a discount relative to the industry's average Forward P/E of 16.69.

Meanwhile, KHC's PEG ratio is currently 3.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 1.89 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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