Kraft Heinz (KHC) facing resistance from downward-sloped trend line
Consumer staple giant Kraft Heinz (Nasdaq: KHC) has been trending lower for the last six months and a trend line has formed that connects the highs from August and October. The stock is now close to that trend line after a rally over the past month.
The company is scheduled to report earnings on February 14. Earnings reports have been a mixed bag in recent years with average EPS growth of 23% per year over the last three years. However, the most recent quarterly report showed a drop in earnings of 6%. The company’s sales have also been slow with the average annual sales being flat over the last three years while the most recent quarter showed modest growth of 2%.
The return on equity for Kraft Heinz is below average at 7.1% while the profit margin is above average at 23.2%.
The Tickeron AI Trend Prediction tool generated a bearish signal for Kraft Heinz on February 5. It showed a confidence level of 78% for a downward move of at least 4% over the next month. Previous predictions on Kraft Heinz have been accurate 74% of the time.
The option activity was interesting on February 6 with far more options changing hands than usual. It was hard to decipher what the intentions of the trades were, but they appeared to be part of a calendar spread of some sort.
There were 24,193 contracts traded at the February 50-strike calls and 16,520 put contracts at the same strike. In the April series, there were over 10,000 call contracts traded at the 50 strike and 6,600 at the 52.50 strike. On the put side, there were 10,000 contracts traded at the 50 strike and 6,500 traded at the 52.50 strike.
KHC in upward trend: price rose above 50-day moving average on July 11, 2025
KHC moved above its 50-day moving average on July 11, 2025 date and that indicates a change from a downward trend to an upward trend. In of 33 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where KHC's RSI Oscillator exited the oversold zone, of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 01, 2025. You may want to consider a long position or call options on KHC as a result. In of 71 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KHC just turned positive on June 24, 2025. Looking at past instances where KHC's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where KHC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KHC broke above its upper Bollinger Band on July 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KHC entered a downward trend on July 01, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.910) is normal, around the industry mean (6.614). P/E Ratio (16.043) is within average values for comparable stocks, (27.114). Projected Growth (PEG Ratio) (1.048) is also within normal values, averaging (2.471). Dividend Yield (0.043) settles around the average of (0.043) among similar stocks. P/S Ratio (1.718) is also within normal values, averaging (35.476).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KHC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KHC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a manufacturer of packaged food products
Industry FoodSpecialtyCandy
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