We recently published a list of 10 Stocks to Watch as Trade Wars Begin. In this article, we are going to take a look at where Kraft Heinz Co (NASDAQ:KHC) stands against other stocks to watch as trade wars begin.
Bill Strazzullo, Bell Curve Trading chief market strategist, said in a latest program on CNBC that the market isn’t done going down and urged investors not to buy every dip and wait for real opportunities. The analyst made some specific predictions about the market bottom:
“Still think it’s not over. I think you know probably across the board it’s another 15% to go to the downside. Look, the top wasn’t that difficult to call. It really wasn’t. And I think the bottom, typically on these major trends when they roll over, they do the same thing. They mean revert to fair value, which is a fancy way of saying that the market should drop down to where most of the trade activity has taken place on the major trend, which is the rally off the March 2020 lows.”
Strazzullo thinks the S&P 500 could fall to 4,500 to 4,100 before seeing a bottom. He repeatedly said during the interview that the market’s gains from the pandemic days are “tapped out.”
“The key driver here was the rally off the March 2020 lows in the height of the pandemic when we knew we were going to get historic monetary and fiscal stimulus. If you knew that, that was the right trend, you could have known months in advance when the market was going to top out. I gave the targets months in advance. If you missed this fundamentally or technically, you were asleep at the switch.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Wall Street is closely watching amid the US-China trade war. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.
Kraft Heinz Co (NASDAQ:KHC)
Number of Hedge Fund Investors: 38
Jim Cramer in a recent program discussed a bearish analyst report about Kraft Heinz Co (NASDAQ:KHC) and mentioned some threats to the company. Cramer believes investors should avoid piling into the stock for “safety” and “stay the course” with their growth investments:
“Let’s say you try to go to safety, so you pick Kraft Heinz, it’s got a really nice yield. Well, this morning, Citi comes out and says sell it. It’s a share loser, it is in trouble on many different margin issues, and it can’t find a way. And then I would throw in GLP-1s because it’s not exactly like they’ve got this incredible lineup of things that are good for you. So this is the dilemma of the market. Can you pull out of a terrific company like an ARM Holdings, AMD, and go into this, recognizing you’re going and sacrificing all your growth, possible yield getting cut because of the dividend? And I say no, stay the course, right? Because I believe that the president will see the light and say it’s the countries that are the problem, not our great American companies. We’re not going to hurt those companies because that hurts the worker. It is such a clear path that I’m offering right now that if they don’t take it, it’s foolish.”
Mairs & Power Growth Fund stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its Q3 2024 investor letter:
“We added The Kraft Heinz Company (NASDAQ:KHC) to the Fund in the quarter. Kraft Heinz is a leading global food company which possesses a portfolio of iconic brands, including its eponymous ketchup brand. The company has been undergoing an operational transformation focused on driving efficiency gains in supply chain, manufacturing and distribution. These efficiency gains have fueled increased investments in technology, automation, innovation and marketing, which should ultimately drive more consistent organic revenue growth and high single digit earnings per share growth. We expect above-average long-term returns, buoyed by consistent free cash flow generation, opportunistic share repurchases and an attractive 4-5% dividend yield. A modest current valuation affords an ample margin of safety.”
Overall, KHC ranks 9th on our list of stocks to watch as trade wars begin. While we acknowledge the potential of KHC as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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