Checking the Overall Picture for The Kraft Heinz Company (KHC)

Sean Reid
February 17, 2018

The stock price volatility for last week at the close of regular trading was 8.26%, pushing the figure for the whole month to now reaching 10.98%. The stock price showed a yearly performance of -20.18% while year-to-date (YTD) performance stood at -6.49%. Some stocks rarely if ever have high EPS, while others seem like they are always high. A higher P/S ratio means that the market is willing to pay for each dollar of annual sales and a better benchmark is to compare with industry average. Also interest rates can affect EPS. This is represented as the equation (P/EPS), where P is the market price and EPS is the earnings per share. It is calculates as Net Profit/No. of Shares Outstanding.

After cutting $1.7 billion in costs by the end of 2017, the world's fifth-largest food and beverage company is planning to ramp up spending in manufacturing, sales and distribution to help jump-start sluggish sales.

Sales in the US, the company's biggest market, fell 1.1 percent to $4.79 billion, declining for the seventh straight quarter and also missing analysts' average estimate of $4.81 billion, according to Thomson Reuters I/B/E/S. It sustained ROA (TTM) at 3.30%.

The Pittsburgh-based packaged foods giant reported Q2 earnings per share (EPS) of $0.90, which was $0.05 worse than the Wall Street consensus estimate of $0.95. Finally, Morgan Stanley dropped their target price on Kraft Heinz from $92.00 to $88.00 and set an "overweight" rating on the stock in a report on Friday, November 3rd. The stock has a 50 day moving average of $78.65 and a 200-day moving average of $85.62. However, applying moving-average strategies in conjunction with portfolio diversification and prudent money management may reduce one's risk substantially.

Kraft Heinz Co (NASDAQ KHC) opened at $72.71 on Friday. When we compare its current volume with average for the same time of day, a Relative Volume (usually displayed as ratio) of 1.04 is obtained. The firm has a market capitalization of $87,632.22, a PE ratio of 22.65, a PEG ratio of 1.93 and a beta of 0.43.

David Knopf, Kraft Heinz CFO, added: "Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives". The 52-Week High range of the stock is $97.77, while the 52-week low range is $70.25.

By taking a look at the stock's current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. The company has a current ratio of 0.77, a quick ratio of 0.43 and a debt-to-equity ratio of 0.48.

But for the fourth quarter, sales in the U.S., Kraft Heinz' biggest market, fell 1.1% to $4.79 billion, declining for the seventh straight quarter and missing analysts' average estimate of $4.81 billion. Salem Investment Counselors Inc. now owns 6,295 shares of the company's stock valued at $539,000 after acquiring an additional 27 shares during the last quarter. The return on assets ratio of the Company was 3.30% while its return on investment ratio was 5.30%. The firm has floated short ratio of 2.86%, hold to candle to sentiment indicator of Short Ratio, its stand at 4.42. The biggest holder now is Mr. Francisco Sa Neto who owns 548,945 shares (0.05% of those outstanding), whilst W. Anthony Vernon holds 199,548 (0.02% of shares outstanding) and Georges El-Zoghbi holds 170,923 (0.01% of shares outstanding).

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