The Chaikin Power Gauge RatingTM for this H.J. Heinz Company $HNZ stock report is very bearish due to very poor financial metrics, bearish price/volume activity and negative expert opinions. The rating also reflects strong earnings performance. HNZ’s financial metrics are very poor due to a high long-term debt to equity ratio relative to its industry group and high price to book value ratio.
Financial Metrics Rating – Very Bearish
HNZ’s financial metrics are very poor. The company is carrying too much long-term debt relative to its industry group and may be overvalued. The rank is based on a high long-term debt to equity ratio relative to its industry group, high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Bullish
HNZ’s earnings performance has been strong. The company has a stable 5 year earnings trend and has a history of strong earnings growth. The rank is based on high earnings growth over the past 3-5 years, worse than expected earnings in recent quarters, a relatively poor trend in earnings this year and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bearish
Price and volume activity for HNZ is bearish. HNZ is experiencing sustained selling and has a declining price trend. The rank for HNZ is based on its relative weakness versus the market, negative Chaikin money flow, a negative Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Bearish
Expert opinions about HNZ are negative. Insiders are not net buyers of HNZ’s stock and HNZ has been under-performing the Food industry over the past 13 weeks. The rank for HNZ is based on analysts revising earnings estimates downward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Food industry group.