Kraft Heinz (NasdaqGS:KHC) Removed From Multiple Russell Indexes

Simply Wall St · 06/30 17:36

Kraft Heinz (NasdaqGS:KHC) faced a significant change in its index positions with its removal from the Russell Top 200 Index, Russell Top 200 Value Index, and Russell 1000 Dynamic Index, while joining the Russell Midcap and Midcap Value Index. These changes represent a reshuffling of its market classification that could influence investor perception and market exposure. Interestingly, this period coincided with a flat share price movement over the past week, against the backdrop of a broader market rally at new highs for the S&P 500 and Nasdaq, driven by optimism from recent geopolitical and trade developments.

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NasdaqGS:KHC Earnings Per Share Growth as at Jun 2025
NasdaqGS:KHC Earnings Per Share Growth as at Jun 2025

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The changes in Kraft Heinz's index positions could alter investor perceptions and market exposure, as the company shifts from the Russell Top to Midcap indexes. This reclassification may impact how investors view Kraft Heinz's growth potential, as it aligns more with mid-sized companies. Over the past five years, Kraft Heinz’s share price, including dividends, delivered a total return of 0.26%. This long-term performance suggests that the company has been relatively stagnant, especially when compared to its recent removal from major indexes and recent share price stability.

Over the past year, Kraft Heinz underperformed the broader US market, which returned 13.7%. This could indicate a disconnect between investor sentiment and the company’s actual market performance. Additionally, the flat share price movement over the past week, despite broader market rallying to new highs, underscores the market’s tempered expectations for Kraft Heinz amidst recent developments.

The company's index movements and reclassification may affect revenue and earnings forecasts as the new categorizations align with revised growth expectations. Analysts anticipate Kraft Heinz's revenue to decline slightly, while margins might grow as strategic investments bear fruit. The current share price of US$28.4 remains below the consensus target price of US$31.56, suggesting that analysts foresee upside potential if the company meets future growth projections outlined in the narrative. However, maintaining disciplined investments and adjustments in response to the competitive landscape will be crucial for realizing predicted growth and market reassessment.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.