Kraft Heinz Sees Upside During Health Crisis

Kraft HeinzIn the early days of the Coronavirus Pandemic, consumers were shopping in bulk, with concerns of disruptions in the supply chain. Now that the nation’s response is well underway, consumers have returned to more regular patterns, but some food producers have still seen sales growth. Kraft Heinz Co. (NASDAQ: KHC) had a strong second quarter. Here’s why this packaged food company’s stock is worth considering in August.

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From the fiscal quarter ending June 27, Kraft Heinz reported year over year sales growth of 8.5% in the U.S. market. Total global sales were up 3.8% to hit $6.65 billion. This beat the average analyst estimate of $6.54 billion. For a well-established packaged food company, it was a strong quarter. Sales typically grow in an average range of 0% to 2% per quarter. Company leadership has attributed the growth to strong household demand. Consumer spending has offset losses seen in the restaurant industry.

The company expects positive earnings growth throughout the year, but profitability may decline slightly, due to worker bonuses and compliance costs during the Coronavirus Pandemic. Analysts expect the stock to hit a target of $36.30 in the short term. Investors looking for a stable pick can consider this affordable stock. There’s a sizable dividend on offer with a yield of 4.54%. As a long term growth and income pick, this is one of the most compelling options on the market today.

Key Data:

  • 1 Year Price Growth: 02%
  • YTD Price Growth: 80%
  • 3 Month Price Growth: 37%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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