Analysts, who typically focus more on growth than dividends, are mixed on Kraft Heinz. Of 21 brokerages covering the stock, 11 have a Hold rating and seven have a Buy or Strong Buy rating. At a share price of around $40.00, the upside potential based on a median price target of $44.00 is 10%. At the high price target of $52.00, the upside potential is 30%.
Kraft Heinz is expected to post fourth-quarter revenue of $7.24 billion, up 11.2% sequentially and 7.9% higher year over year. Adjusted EPS are forecast at $0.78, up 24.0% sequentially and down 1.3% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $2.71, down 7.5% year over year, on revenue of $26.34 billion, up by 1.1%. Costs are higher, but Kraft is able to raise prices enough to keep from falling behind.
The company’s stock trades at 14.8 times expected 2022 EPS, 14.5 times estimated 2023 earnings of $2.76 and 13.7 times estimated 2024 earnings of $2.92 per share. The stock’s 52-week range is $32.73 to $44.87. Kraft Heinz pays an annual dividend of $1.60 (yield of 4.04%). Total shareholder return for the past 12 months was 20.22%.
Roblox
Interactive entertainment platform Roblox Corp. (NYSE: RBLX) has seen its stock price tumble by nearly 48% over the past 12 months. Thanks to a year-to-date gain of nearly 23%, the damage is not worse. When the company announced third-quarter results that fell short of estimates, the stock took a 20% hit. Roblox is unlike many other tech companies in two ways: it has yet to announce any layoffs, and it continues to place more emphasis on growth than profits.
Of 28 analysts covering the stock, 12 have a Buy or Strong Buy rating and nine more rate it at Hold. At a price of around $35.00 a share, the implied gain based on a median price target of $35.50 is 1.4%. At the high target of $71.00, the upside potential is about 100%.
The consensus fourth-quarter revenue estimate is $884.71 million, up 26.1% sequentially and by 14.8% year over year. Analysts also expect Roblox to post a loss per share of $0.54, compared to the prior quarter’s loss of $0.50 per share and the year-ago quarter’s loss of $0.25. For the full fiscal year, the company is expected to post a loss of $1.62 per share compared to last year’s loss of $0.97 per share. Revenue is forecast at $2.85 billion, up 4.5%.
Roblox is not expected to post a profit in 2022, 2023 or 2024. The stock’s enterprise value to sales multiple for 2022 is 6.9. For 2022 and 2023, the multiple is 5.9 and 5.1, respectively. The stock’s 52-week range is $21.65 to $73.71, and the company does not pay a dividend. The total shareholder return for the past year was negative 47.49%.
Originally published at 24/7 Wall St.
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