Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 1, 2023

Article Excerpt

KRAFT HEINZ CO., $35.52, Nasdaq symbol KHC, is a buy. The company is a leading producer of processed foods. Its top brands include Velveeta and Philadelphia cream cheeses, Oscar Meyer hot dogs, and Maxwell House coffee. Kraft continues to benefit from a cost-cutting plan, which will cut $2.5 billion from its annual costs by the end of 2027. Thanks to those savings, the company now plans to buy back up to $3 billion of its outstanding shares through December 26, 2026. That’s equal to 7% of its current market cap (the total value of all outstanding shares) of $43.6 billion. Kraft is also using those savings to develop innovative new products. For example, it will soon launch a vegan version of its famous macaroni and cheese dinner. Called “NotMac & Cheese,” this product replaces dairy ingredients with fava bean protein and coconut oil powder. The company will probably earn $2.96 a share in 2023, and the stock trades at just 12.0 times that forecast. The $1.60…