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The latest trading session saw Kraft Heinz (KHC) ending at $30.77, denoting a +0.2% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.16%.
Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 0.94% over the past month, outpacing the Consumer Staples sector's loss of 5.7% and the S&P 500's loss of 2.36% in that time.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is forecasted to report an EPS of $0.79, showcasing a 1.28% upward movement from the corresponding quarter of the prior 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. At present, Kraft Heinz boasts a Zacks Rank of #4 (Sell).
Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 10.04. Its industry sports an average Forward P/E of 16.73, so one might conclude that Kraft Heinz is trading at a discount comparatively.
One should further note that KHC currently holds a PEG ratio of 3.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.75 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 25% of all 250+ industries.