Based in Pittsburgh, Pennsylvania, The Kraft Heinz Company (KHC) is a leading manufacturer and marketer of food and beverage products. Its diverse portfolio includes sauces, cheese, meals, meats, refreshment beverages, coffee, and more. Valued at a market capitalization of $40.4 billion, Kraft Heinz operates across North America and internationally.
Shares of Kraft Heinz have significantly underperformed the broader market in the past year. Over the past 52 weeks, KHC stock has soared marginally versus the S&P 500 Index’s ($SPX) 31.1% returns. In 2024 alone, KHC dipped 9.7% compared to the SPX’s 19.8% gains on a YTD basis.
Narrowing the focus, KHC has also struggled to keep up with the Nasdaq Food & Beverage ETF’s (FTXG) 4.9% rise over the past 52 weeks and marginal returns in 2024.
On Oct. 30, KHC released its Q3 earnings report, and its shares dipped 3.1%. Its adjusted earnings were $0.75 per share, surpassing analyst expectations of $0.74. Revenue was $6.38 billion, slightly below the anticipated $6.41 billion. The company expects full-year earnings between $3.01 and $3.07 per share.
For the current fiscal year, ending in December, analysts expect Kraft Heinz to report an EPS growth of 1% year over year to $3.01. The company has a history of exceeding the consensus EPS estimates in each of its four quarterly reports.
Among the 17 analysts covering the KHC stock, the overall consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than a month ago when eight analysts recommended “Strong Buys.”
On Nov. 1, Barclays PLC (BCS) lowered the firm’s price target on Kraft Heinz to $35 from $36 and kept an “Equal-Weight” rating on the shares.
KHC’s mean price target of $36.41 represents a premium of 9.1% to current price levels. The Street-high target of $41 indicates a potential upside of 22.8% from current price levels.
On the date of publication, Kritika Sarmah 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.
