Kraft Heinz (KHC) stock has really struggled over the last year. This negativity worsened in 2018, but recently shares have begun to rally. As the stock fell to $60, we cited it as a name to watch for value, especially if it were to fall well below this level. With rumors swirling surrounding a possible sale of the company, or a purchase of Campbell Soup Co (CPB), we wanted to check back in on the name.
We want to review the speculation of a possible sale. We will further discuss inflationary pressures and Kraft Heinz’s performance. At the end of the day, we will have a value stock that currently yields 4%. Given our projections for 2018 and our view on the stock at present levels, we remain cautiously bullish.
Stock is rebounding from the doldrums
Take a look at the year-to-date price history of Kraft Heinz and note specifically the drop-off since earlier this year, along with the subsequent rebound:
