Valued at a market cap of $43.52 billion, The Kraft Heinz Company (KHC) manufactures and markets food and beverage products. Based in Pittsburgh, Pennsylvania, the company’s products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products.
Companies worth more than $10 billion are generally described as “large-cap stocks,” and Kraft Heinz fits well into that category. In addition to Kraft and Heinz, over 20 other brands are part of the company's profile and are renowned for their high-quality, great-tasting, and nutritious food and beverages.
Shares of KHC are trading 7.6% below their 52-week high of $38.96, which they hit on Apr. 25. The food and beverage company has gained 4.7% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 1.7% gain over the same time frame.
However, In the longer term, KHC stock is down 2.7% on a YTD basis, lagging behind SPX’s 9.2% gains. Shares of KHC have gained 14.1% over the past 52 weeks, underperforming SPX’s 22% return over the same time frame.
KHC has been trading above its 200-day moving average since early November and has remained above its 50-day moving average since late July, indicating a bullish trend.
Despite a year-over-year decline in revenues and earnings, shares of KHC gained 4.1% following its Q2 earnings release on Jul. 31. Earnings of $0.78 per share beat the consensus estimate of $0.73. This was primarily driven by a 35.5% year-over-year increase in the company's adjusted gross margin.
KHC has lagged behind its rival, Mondelez International, Inc. (MDLZ), which gained 3.8% on a YTD basis but has surpassed MDLZ’s 7.7% returns over the past 52 weeks.
Despite KHC’s underperformance relative to the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts in coverage, and the mean price target of $38.18 suggests a premium of 6.1% to its 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.
