The Kraft Heinz Company (KHC), based in Pittsburgh, Pennsylvania, is a leading diversified food and beverage company. With a market cap of $39.83 billion, Kraft Heinz plays a crucial role in the food industry, offering a broad range of products, including condiments, sauces, cheese, and frozen meals. Competing with other major food firms like the Hershey Company (HSY), Kraft Heinz continues strengthening its market presence through a customer-focused approach and a strong commitment to innovation and excellence in food production.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Kraft Heinz fits this criterion perfectly, signifying its substantial size, stability, and influence in the food and beverage industry. As a prominent food production and distribution player, Kraft Heinz's extensive market presence and industry expertise make it a trusted partner for consumers and retailers seeking high-quality and reliable food products.
Shares of KHC have dropped 17% from their 52-week high of $38.96, which they reached on Apr. 25. Over the past three months, KHC's shares have declined 11.1%, underperforming Invesco Food & Beverage ETF (PBJ), which fell 5.6% during the same period.
In the long term, KHC is down 12.6% on a YTD basis, and the shares have declined 9.1% over the past 52 weeks. In comparison, PBJ declined marginally in 2024 and slightly rose over the past year.
To confirm the recent bearish price trend, KHC has been trading below its 50-day moving average since early May and 200-day moving average since early June.
Kraft Heinz is considering selling its popular brand Oscar Mayer, known for its hot dogs, bacon, ham, and bologna products. According to a Wall Street Journal report, the sale could fetch between $3 billion and $5 billion. On May 1, KHC reported its Q1 results, showing a 1.2% year-over-year decrease in net sales to $6.41 billion, while its adjusted EPS increased by 1.5% year over year to $0.69. Given these mixed results, the stock declined 6% on the earnings release day.
Highlighting the contrast in performance, rival HSY has outperformed KHC, with a 1.8% decline on a YTD basis.
Despite its recent underperformance compared to PBJ, analysts are moderately optimistic about KHC's prospects. The stock has a consensus rating of "Moderate Buy" from 17 analysts in coverage. The mean price target of $38.94 reflects a 20.5% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
