The Kraft Heinz stock: buy or sell
Jan 27th, 2021
The Kraft Heinz stock brief
- The Kraft Heinz stock grew 1.90% to close at $34.39 on the stock market today, after 3 consecutive sessions in positive.
- From the chart point view, price is drawing a scaled uptrend since September 2020 with higher tops and higher bottoms. This uptrend marked a 21.86% gain
- The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally.
Should I buy The Kraft Heinz stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $KHC stock a buy?
Currently, The Kraft Heinz stock matches one trading strategy:
Uptrend buy setup
The Kraft Heinz stock is in an uptrend since in September 2020 that so far marked a gorgeous 22.00% gain. Price marked a pull back in this uptrend at $31.60 on January 15, and since then it bounced up a 8.83%. Breaking out above $35.41 - it's last top - will be a good entry point if The Kraft Heinz resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $31.87
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$35.41||$31.87||10.00%|
Should I sell The Kraft Heinz stock?
When you own a stock with some profit, it's really difficult to decide the best moment to sell and get your benefits. Trading strategies prevent us from making rash decisions based on our feelings or the buzz that surrounds the market. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies should not be used for shorting $KHC stock
A guiding principle is that you should not keep a trade that results in higher than expected losses by the time of the buy. When to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell The Kraft Heinz stock?
Currently, The Kraft Heinz stock doesn't match any of our preferred sell setups, so if you own The Kraft Heinz shares and your operation is in profit probably is not time to sell now
The Kraft Heinz ratings
In the last month, 2 ratings were published for The Kraft Heinz
|Jan 12th, 2021|
|Jefferies Financial Group||Sell → Neutral|
|Jan 19th, 2021|
|JPMorgan Chase & Co.||Neutral|
The Kraft Heinz stock analysis
Since in September 2020, The Kraft Heinz has been printing an uptrend that by now marked an amazing 21.86%. During this uptrend, the price gave some entry points on the breakouts. Latest pullback was on January 15, when price bounced at $31.60. Now, it swings in a consolidation between its last top ($35.41) and its last bottom ($31.60)
Supports and resistances
The current resistances are:
The current support levels are:
Since the price broke down the lower band on January 15, the price has bounced off by 8.83%. The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks
Relative strength index
When the fluctuates for so long below 70 and above 30, without signaling moments of overvaluation and undervaluation, the indicator is of little use, and we currently are in one of these cases.
The Kraft Heinz stock price history
The Kraft Heinz went public priced at an adjusted price1 of $56.43 on Jul 2015. Since then, KHC stock depreciated by -39.06%. If you had invested thousand dollars in The Kraft Heinz stock at that time, it would worth $609.43 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for The Kraft Heinz stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
The following table shows the price predictions posted by financial institutions over the last 30 days. Again, these estimates are not direct recommendations for individual traders and should not be trusted blindly.
There are 2 price forecasts issued for The Kraft Heinz that average $35.50. The Kraft Heinz closed at $34.39 on Tuesday, so the target price is forecasting an increase by 3.23%.
|Brokerage firm||Price target|
|Jan 12th, 2021|
|Jefferies Financial Group||$32.00 → $34.00|
|Jan 19th, 2021|
|JPMorgan Chase & Co.||$39.00 → $37.00|
Earnings and financials
Last October, The Kraft Heinz ($KHC) hosted the quarterly shareholders event and presented the report. The Kraft Heinz presented earnings of $0.70 per share on sales of $6.4 billion. The Wall St estimate was $0.62 per share on revenue of $6.3 billion.Same quarter last year, reported EPS was $0.69, so current EPS means a gain of 1.45%. Looking at revenue, figures moved up a 6.01% compared to $60.8B same quarter 12 months ago.
The Kraft Heinz ($KHC) will host the quarterly earnings call next Thursday. Wall Street analysts estimate of $0.73, that is a 4.29% more than Q3.
The Kraft Heinz competitors
The Kraft Heinz is part of the Packaged Foods industry, where it has industry peers.
The Kraft Heinz biggest competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|The Kraft Heinz ($KHC)||$41.1B||Neutral||0|
|Mondelez ($MDLZ)||$80.4B|| ||2|
|General Mills ($GIS)||$34.0B||Buy||1|
|Tyson Foods ($TSN)||$24.1B||Neutral||0|
|J.M. Smucker ($SJM)||$12.7B||Neutral||0|
|The Hain Celestial (HAIN)||$4.1B||Buy||1|
|Treehouse Foods (THS)||$2.3B||Neutral||0|
1 In the last 30 days.
The Kraft Heinz performance
To better understand The Kraft Heinz stock performance you must compare its gains with other related stocks in same sector or industry.. For The Kraft Heinz, the benchmark is made against PepsiCo, Mondelez, General Mills, Tyson Foods, J.M. Smucker, The Hain Celestial and Treehouse Foods.
|The Kraft Heinz ($KHC)||-1.10%||12.20%||1.30%|
|General Mills ($GIS)||1.50%||-3.40%||-6.30%|
|Tyson Foods ($TSN)||2.70%||12.70%||11.40%|
|J.M. Smucker ($SJM)||7.90%||8.90%||16.10%|
|The Hain Celestial (HAIN)||8.50%||24.20%||27.90%|
|Treehouse Foods (THS)||2.40%||3.40%||-1.50%|
Disclaimer:The opinions given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual circumstances of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for general educational motives only
The Kraft Heinz summary
|Tuesday, January 26th, 2021|
|Day range||$33.83 - $34.41|
|Average true range||$0.85|
|50d mov avg||$33.33|
|100d mov avg||$32.02|
|200d mov avg||$31.69|
|Earnings date||February 11th, 2021|