Should You Buy Kraft Heinz Stock at Its All-Time Low?
Kraft Heinz's (NASDAQ: KHC) stock recently dropped to an all-time low after the packaged-foods giant simultaneously posted preliminary first- and second-quarter earnings results. For the first half of the year its revenue fell 5% to $12.4 billion, its organic sales fell 1.5%, and its adjusted earnings plunged 51% to $0.70 per share on higher impairment charges.
Those numbers didn't impress investors, who were still dazed by a $15 billion writedown, dividend cut, SEC probe, and delayed 10-K filing earlier this year. Unfortunately, Kraft Heinz's lackluster earnings report included another $1.2 billion in charges and writedowns, and it warned that it would delay its quarterly filing for the period ended June 29.
That barrage of bad news spooked the bulls and attracted the bears. But after an 8.6% sell-off the day earnings were reported, Kraft Heinz trades at about nine times forward earnings and pays a forward dividend yield of 5%. Will that low multiple and high yield set a floor under this stock?
Source Fool.com
