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: 10-day moving average broke above 50-day moving average on February 11, 2026
The 10-day moving average for KHC crossed bullishly above the 50-day moving average on February 11, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 03, 2026. 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 .
KHC moved above its 50-day moving average on February 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 195 cases where KHC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 54 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 .
The Moving Average Convergence Divergence Histogram (MACD) for KHC turned negative on March 03, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
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 (0.688) is normal, around the industry mean (37.627). P/E Ratio (13.041) is within average values for comparable stocks, (78.589). Projected Growth (PEG Ratio) (1.034) is also within normal values, averaging (2.564). KHC has a moderately high Dividend Yield (0.066) as compared to the industry average of (0.036). P/S Ratio (1.153) is also within normal values, averaging (40.389).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 84, placing this stock worse than average.
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General Information
a manufacturer of packaged food products
Industry FoodMajorDiversified
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