It has not been a good year for Kraft Heinz (KHC) , with shares down almost 21% over the past 12 months.

Even lately it's been a tough stock to hold. Kraft Heinz stock is down about 8% on the year and more than 10% from its 2018 highs. Trading roughly flat on Wednesday at $71.72, the stock is hovering just above its 52-week low of $70.25.

So what should investors do with earnings on deck Friday before the open? If you ask the analysts at Morgan Stanley, they'll tell you shares are starting to look compelling, TheStreet's Jim Cramer pointed out on CNBC's "Stop Trading" segment.

The company can seemingly fix its "top-line headwinds," analyst Matthew Grainger says, while there's also room for improvement in emerging markets and costs.

Grainger has an overweight rating and $88 price target on Kraft Heinz, implying about 22% upside from current levels. He also contends that the stock deserves some sort of premium for its M&A prowess.

The company is "currently not at peak performance, but valued for peak pessimism," Cramer read from the analyst's note.

Shares pay a dividend yield of 3.5%, which is attractive. But without an acquisition, it's hard to see how the company can spark organic growth improvement, reasoned Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.

After the bevy of M&A in the industry, he wondered, how many options are really left at the moment?

Analysts are expecting earnings of 95 cents per share on revenue of $6.92 billion for the most recent quarter. If the results are in-line, it will represent slight growth from last year's earnings of 91 cents per share on $6.86 billion in sales.

Kraft Heinz was able to grind out a subtle rise Wednesday, climbing 0.29% to $71.92. 


At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.

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