Yahoo Finance Kraft Heinz (KHC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Kraft Heinz (KHC) closed at $39.07, marking a -1.19% move from the previous day. This change lagged the S&P 500's 1.11% loss on the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 2.13%.
Prior to today's trading, shares of the maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese had lost 6.59% over the past month. This has lagged the Consumer Staples sector's loss of 3.12% and the S&P 500's gain of 7% in that time.
Kraft Heinz will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. In that report, analysts expect Kraft Heinz to post earnings of $0.77 per share. This would mark a year-over-year decline of 2.53%. Our most recent consensus estimate is calling for quarterly revenue of $7.18 billion, up 6.99% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 14.4. For comparison, its industry has an average Forward P/E of 17.88, which means Kraft Heinz is trading at a discount to the group.
We can also see that KHC currently has a PEG ratio of 2.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.8 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The Kraft Heinz Company (KHC) : Free Stock Analysis Report
