Kraft Heinz (KHC) Stock Slides as Market Rises: Facts to Know Before You Trade

Core Viewpoint - Kraft Heinz (KHC) has shown underperformance in the stock market compared to major indices, with a recent stock price of $35.11, reflecting a -0.74% change from the previous day, and a decline of 0.17% over the past month, while the Consumer Staples sector gained 2.54% [1][2]. Financial Performance - The upcoming earnings report for Kraft Heinz is anticipated to show earnings per share (EPS) of $0.74, which is a 2.78% increase year-over-year, while revenue is projected at $6.44 billion, indicating a 2.05% decline from the same quarter last year [2]. - For the entire fiscal year, earnings are estimated at $3.02 per share and revenue at $26.15 billion, reflecting changes of +1.34% and -1.82% respectively from the prior year [3]. Analyst Estimates - Recent changes in analyst estimates for Kraft Heinz indicate a dynamic business environment, with upward revisions suggesting positive sentiment towards the company's operations and profit generation capabilities [4]. - The Zacks Consensus EPS estimate has decreased by 0.13% in the past month, and Kraft Heinz currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - Kraft Heinz is trading at a Forward P/E ratio of 11.72, which is below the industry average of 17.97, indicating a potential undervaluation [7]. - The company has a PEG ratio of 3.46, compared to the industry average of 2.84, suggesting that the stock's expected earnings growth rate is not fully reflected in its price [7]. Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 138, placing it in the bottom 46% of over 250 industries, which may impact the performance of Kraft Heinz [8].