Stock reacted to earnings
On May 4, 2016, after markets closed, Kraft Heinz (KHC) reported its fiscal 1Q16 financial results ending April 3, 2016. Management discussed the fiscal 1Q16 performance over a conference call following the release. The stock rose 4% the next day. Its revenue and earnings beat estimates. The margins also grew.
As on May 9, the stock has risen 12% since its last earnings report on February 25. Since then, it has been on a rising trend. The company has gained 15% since it started trading as a combined company on July 6, 2015.
So far, Kraft Heinz’s stock has risen by 16% in 2016. It outperformed the Market, represented by the S&P 500 Index, by 14% as of May 9. It closed at $84.26 on May 9.
Peers in the industry
The company operates as a food and beverage company worldwide. It operates internationally through its subsidiaries. It’s part of the processed and packaged goods industry. Its headquarters are in Pittsburgh, Pennsylvania. It offers its products under brands including Kraft, Heinz, ABC, Capri Sun, and Classico. Its peers in the industry include J.M. Smucker (SJM), Mondelez International (MDLZ), and General Mills (GIS).
J.M. Smucker, Mondelez, and General Mills closed at $75.34, $44.28, and $62.73 on May 9, respectively. So far, they have returned 5%, -1.2%, and 8.7% in 2016. The First Trust US IPO Index Fund (FPX) invests 5.1% of its portfolio in Kraft Heinz stock. It closed at $50.74 on May 9. FPX’s YTD return is -0.76%. The WisdomTree U.S. Quality Dividend Growth Fund (DGRW) and the iShares Morningstar Large Value ETF (JKF) also invest 1.1% and 0.87% of their portfolios in Kraft Heinz.
Next, we’ll see what Wall Street analysts are recommending for Kraft Heinz after its 1Q16 results.