To address why Kraft Heinz (NASDAQ: KHC) is rising, I must say that they are executing a substantial turnaround strategy and providing deep value to investors and a very high yield.

Kraft Heinz has led the consumer staples sector through the COVID-19 pandemic and achieved its long-term goals.

Furthermore, Kraft Heinz has demonstrated tremendous brand strength and pricing power, which has resulted in its bottom line strengthening, balance sheet improving, and dividend health improving.

Kraft Heinz is Anticipated to Grow both Now and in the Future.

Kraft Heinz’s fourth quarter should benefit from organic and acquisition growth. Revenue is expected to exceed $7.15 billion and the bottom line to improve.

The only negative news is that adjusted EPS will rise sequentially but remain flat year on year.

The opportunity here is twofold: not only does Kraft Heinz consistently outperform its consensus projections, but ConAgra Brands (NYSE: CAG), another packaged food behemoth, just posted top-line growth, which bodes well for its competitor’s top and bottom lines.

According to Conagra Brands’ report, organic sales were high, and margins rose more than projected. This resulted in a high-single-digit sales increase and a 26.6% increase in adjusted profitability.

If Kraft Heinz maintains its current level of strength, its revenue might exceed the consensus estimate by 100 to 200 basis points and adjusted EPS by more than 2500 basis points.

Analysts’ Attitudes are Changing

There hasn’t been much news from Kraft since the last earnings report, but analyst sentiment has warmed.

Wells Fargo (NYSE: WFC) has given the stock one upgrade, two price increases, and a freshly launched target for the first week of 2023.

They initiated the stock at Equal Weight, indicating that it is a buy for anyone who does not already own it, and their price objective is higher than the consensus. consensus price prediction estimates the stock is fairly valued at current levels, around $41, but it is going higher. If this trend continues, this stock will benefit from a significant tailwind from analysts this year. The 11 experts’ consensus is a solid Hold bordering on Buy.

Kraft Heinz also provides value and yield. It is one of the cheapest consumer staples stocks on the market, trading at 15X earnings, and it also pays one of the highest, if not the highest, dividends.

This stock is yielding 3.90% at current prices and is a safe payout. Not only has the corporation paid it on time for years, but the business has grown significantly in the last two years.

In this light, investors should expect a dividend hike in the not-too-distant future, but don’t hold your breath.

Kraft Heinz Makes a Move Higher

KHC shares are trading within a range, although the trend is optimistic.

The market is rising on an updraft that should take it to the top of the range near $45. If Q4 results are as solid as expected, this market could generate enough momentum to break out to a new high. In that case, KHC stock may rise another $5 to $10 this year as a result of value-yield-driven multiple increases.

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