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Kraft Heinz (KHC) closed at $29.66 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Shares of the processed food company with dual headquarters in Pittsburgh and Chicago have depreciated by 5.76% over the course of the past month, outperforming the Consumer Staples sector's loss of 5.98% and lagging the S&P 500's loss of 2.8%.
The investment community will be paying close attention to the earnings performance 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, down 2.53% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Kraft Heinz. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. Kraft Heinz is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Kraft Heinz currently has a Forward P/E ratio of 9.73. This represents a discount compared to its industry's average Forward P/E of 16.6.
We can additionally observe that KHC currently boasts a PEG ratio of 3.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous industry had an average PEG ratio of 2.75 as trading concluded yesterday.
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 18% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.