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In the latest market close, Kraft Heinz (KHC) reached $28.73, with a +0.07% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.
The processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 8.13% in the past month, falling short of the Consumer Staples sector's loss of 7.07% and the S&P 500's loss of 3.31%.
Analysts and investors alike will be keeping a close eye on the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.78, reflecting no change from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.69 billion, indicating a 2.53% downward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Kraft Heinz. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% lower. At present, Kraft Heinz boasts a Zacks Rank of #4 (Sell).
Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 9.4. Its industry sports an average Forward P/E of 16.34, so one might conclude that Kraft Heinz is trading at a discount comparatively.
We can additionally observe that KHC currently boasts a PEG ratio of 3.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.67 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.