Stockchase Opinions

Lorne Steinberg Kraft Heinz Company KHC-Q BUY Mar 06, 2025

Tariffs -- how to benefit?

Consumer staples are outperforming in the last few days, and that speaks to the advantage of having a balanced portfolio. Companies like KHC, UL, KVUE, and Nestle. It's not that they won't be affected (their costs would go up), but they're far less cyclical than other businesses. Earnings will be much more stable. Earnings could fall 10%, but not 50%. Dividends will be sustained.

Companies like Unilever and Nestle are huge in NA, but huge globally as well.

$31.240

Stock price when the opinion was issued

food processing
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RISKY
It's a terrible company, even though shares are too cheap. That said, you might be able to make money on this.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 13/22, Up 5.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KHC is progressing well. To remain disciplined, we recommend trailing up the stop to $33.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 13/22, Up 17%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KHC has achieved its target at $42. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $33) to $38. If triggered, this would result in a net investment gain of 11% when combined with our previous buy recommendation.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 13/22, Up 5.8%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with KHC has triggered its stop at $38.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 11%, when combined with our previous recommendation to cover half the position. 

BUY

Very strong company with excellent brands.
Good long term investment.
Consumer staples business with defensive business model.
Recent earnings strong.


DON'T BUY

Oscar Meyer brand up for sale - will be interesting to see if full value is realized. Does not think it will be notable. Don't buy. 

DON'T BUY

It deserves to be struggling. It has the worst collection of brands. Shares deserve to go lower.

DON'T BUY
Close to a 52-week low.

Folks over 25 have some nostalgia for the brands. Product offerings to the market have been challenged. Consumer has evolved to be more health-conscious. Despite yield of 5.5%, stock price is more indicative of its future.