McCormick & Company, Incorporated (MKC)

McCormick stock forecast: buy or sell

McCormick stock outlook

  • After reaching new all-time highs yesterday, McCormick closed at $185.91 inching a 1.12%
  • It's been 4 consecutive sessions in negative for McCormick, gaining a 1.51%
  • On July 2 broke out above its latest top at $179.76
  • McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry.
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Important note:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have an understanding of the particular positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for learning motives only

McCormick stock chart overview

Should I buy McCormick stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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 MKC stock a buy?

Currently, McCormick stock matches one trading strategy:

Uptrend buy setup

McCormick stock continues to trend higher since in late March and marked an amazing 66.92% gain. Price marked a pull back in this uptrend at $164.48 on June 15, and since then it bounced up a 13.03%. Price just broke out above the entry point at $179.76, but it can be traded. If price goes above $188.75, don't chase the price and wait for the following entry point. If you decide to enter this trade, the suggested stop loss is at $161.78

Buy setupBuy pointStop lossRisk
Uptrend buy setup$179.76$161.7810%
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Should I sell McCormick stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your profits. As when we have to buy shares, deciding when is the best time to sell is not a whimsical decision, and we must adhere our own trading style. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling shares you already own, not for selling short MKC stock

A golden rule is that you must never mantain an open trade that produces losses greater than those expected upon the buy. The moment to sell your stock must always be ruled by the stop-loss (automatic or manual)

Is it time to sell McCormick stock?

In the current situation of McCormick there is not any eligible sell setup, so McCormick stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell McCormick stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 ratings were published for McCormick

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McCormick ratings

Brokerage firmRating
Jun 22nd, 2020
Jefferies Financial Group SellNeutral
Jun 26th, 2020
Deutsche Bank Neutral

Technical analysis

Since in late March, McCormick has been drawing an uptrend that so far marked an amazing 66.92%. The price action shows higher peaks and troughs, and along the way provided very few entry points for those who wanted to enter. Latest low was on June 15, when price bounced at $164.48. McCormick broke out above $179.76 (its last top) on July 2. That breakout was a good buying opportunity

MKC at All-time Highs

Yesterday, McCormick reached new all-time highs (ATH) again at $186.10. Stock surged fast in the last 2 weeks, hiting new all-time highs 3 times

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use support and resistance levels as a way to spot price points in the stock price action that may behave as barriers, preventing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. On the contrary, a resistance level is where the price may find opposition as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally ruptures this level, the price will rally easily until it finds the next resistance

Price is at highs and there are not upper resistances.

The current support levels are:

  • S1: $179.76 (-3.31% below)
  • S2: $173.25 (-6.81% below)
  • S3: $171.37 (-7.82% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established studio created by John Bollinger. Essentially, the Bollinger Bands are bands that flow around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is trading very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price movements to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    Relative Strength Indicator crossed over the 70 level yesterday, marking a value of 73.4. The fact that the Relative Strength Indicator value is above the level of 70 does not imply a sell point, as stocks can rise during several weeks being in the overvalued zone

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    Earnings and financials

    On June 25, McCormick had the quarterly financial event and presented the second-quarter report. McCormick presented 2nd-quarter earnings of $1.47 per share on sales of $1.4 billion. The Wall St estimate was $1.16 per share on revenue of $1.4 billion.

    This compares to earnings of $1.16 per share a year ago, so posted EPS is an increase of 26.72%. Looking at revenue, figures grew a 7.69% compared to $1.3B same quarter 12 months ago.

    McCormick is presenting earnings report next October. Expected earnings of %s per-share for this quarter is $1.49. If you own or you are planning to buy McCormick stock, be on your toes as the financial reporting day usually has a very high volatility, and price can soar and sink with exceptionally low liquidity and not respecting your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

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