Yahoo Finance Here's Why Kraft Heinz (KHC) Fell More Than Broader Market
The most recent trading session ended with Kraft Heinz (KHC) standing at $38.37, reflecting a -0.52% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Coming into today, shares of the the processed food company with dual headquarters in Pittsburgh and Chicago had gained 5.58% in the past month. In that same time, the Consumer Staples sector lost 0.34%, while the S&P 500 lost 3.04%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. It is anticipated that the company will report an EPS of $0.68, marking stability compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, down 1.11% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.02 per share and revenue of $26.77 billion, indicating changes of +1.34% and +0.48%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Kraft Heinz boasts a Zacks Rank of #2 (Buy).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 12.75. This represents a discount compared to its industry's average Forward P/E of 16.83.
Also, we should mention that KHC has a PEG ratio of 3.04. 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. The average PEG ratio for the Food - Miscellaneous industry stood at 2.04 at the close of the market yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Kraft Heinz Company (KHC) : Free Stock Analysis Report
