Yum! Brands stock: buy or sell?

YUM stock price: $107.19 2.54% At close on Nov 24th, 2020

Updated on:
Nov 24th, 2020

2

Yum! Brands stock brief

  • Yum! Brands closed on Tuesday at $107.19 after skyrocketing a 2.54%.
  • UBS Group posted a strong positive rating for Yum! Brands last Thursday, with a target of $114.00
  • YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide.

Should I buy Yum! Brands 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 $YUM stock a buy?

In the current situation of Yum! Brands there is not any eligible buy setup. This doesn't mean we expect a selloff for $YUM in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Yum! Brands stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Like when we have to buy shares, deciding when is the best time to sell is not a haphazard decision, and we must adhere our own trading strategy. When selling, as well as buying, our setups are very simple to use but are only valid for selling shares you already own, not for selling short $YUM stock

A guiding principle is that you must never mantain an operation that shows a higher than expected losses upon the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Yum! Brands stock?

In the current situation of Yum! Brands there is not any eligible sell setup, so Yum! Brands stock holders with operations in green can keep their positions

Yum! Brands ratings

In the last month, 2 ratings were published for Yum! Brands

Yum! Brands analysts' ratings - Last month
Brokerage firmRating
Oct 30th, 2020
Credit Suisse Group Neutral
Nov 19th, 2020
UBS Group Strong buy

Yum! Brands stock analysis

Since last September, Yum! Brands has been printing an uptrend that by now marked an amazing 22.24%. The price shows higher peaks and troughs, and along the way provided very few entry points for those who wanted to enter. Latest pullback was in late October, when price bounced at $91.81. Yum! Brands broke out above $101.06 (its last top) on November 13. That breakout was a good buying opportunity

SMAs overview

YUM stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $107.64 (0.42% above)
  • R2: $110.62 (3.20% above)
  • R3: $112.51 (4.96% above)
  • The current support levels are:

  • S1: $105.59 (-1.49% below)
  • S2: $102.06 (-4.79% below)
  • S3: $101.27 (-5.52% below)
  • Bollinger bands

    The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    YUM stock Bollinger Bands chart

    Relative strength index

    The Relative Strength Indicator (RSI) has been between the the levels of 30 and 70 for some weeks, and therefore, without this indicator really being of any help to us in making any decisions.

    YUM stock RSI chart

    Yum! Brands stock price history

    Yum! Brands went public priced at an adjusted price1 of $3.83 on Sep 1997. Since then, YUM stock has risen by 2,698.69%, with an average of 117.33% per year. If you had invested $1,000USD in Yum! Brands stock on Sep 1997, it would worth $27,986.95 today.

    1: Adjusted price after possible price splits or reverse-splits

    YUM stock price history chart

    Price target for Yum! Brands stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.

    The following table shows the price target released by brokerage institutions in the last 30 days. Again, these predictions are not direct recommendations for small investors and must not be followed blindly.

    Averaging all price targets exposed below, the estimated price for Yum! Brands stock is $108.50. Yum! Brands closed at $107.19 on Tuesday, so the target price is predicting an increase by 1.22%.

    Yum! Brands stock price predictions
    Brokerage firmPrice target
    Oct 30th, 2020
    Credit Suisse Group $99.00$103.00
    Nov 19th, 2020
    UBS Group $108.00$114.00

    Earnings and financials

    In late October, Yum! Brands ($YUM) had the earnings event and presented the fiscal third-quarter report. Yum! Brands reported fiscal 3rd-quarter earnings of $1.01 per share on revenue of $1.4 billion. The market estimate was $0.80 per share on revenue of $1.4 billion.

    Compared to the same quarter one year ago, EPS was $0.80, so reported EPS means a gain of 26.25%. Turnover rose a 8.14% on an annualized basis in the FQ3, from $13.4B to $14.5B last quarter.

    Yum! Brands ($YUM) will host the earnings call next February. Forecasted earnings a share for this quarter is $1.01, compared to $1.01 that was reported for Q3.

    Yum! Brands competitors

    Yum! Brands is part of the Restaurants industry, which contain 27 industry peers.

    The following are some of Yum! Brands main competitors:

    Yum! Brands competitors
    CompanyMarket capRatingBullish ratings1
    Yum! Brands ($YUM) $31.4B Buy 1
    McDonald's ($MCD) $161.1B Buy 5
    Starbucks ($SBUX) $112.2B Buy 2
    Chipotle ($CMG) $35.0B Buy 2
    Yum China ($YUMC) $24.2B Buy 1
    Restaurant Brands International ($QSR) $16.3B Buy 5
    Domino's Pizza ($DPZ) $15.4B Neutral 0

    1 In the last 30 days.

    Yum! Brands performance

    To better understand Yum! Brands performance you must compare its gains with other related stocks in same sector or industry.. For Yum! Brands, the benchmark is made against McDonald's, Starbucks, Chipotle, Yum China, Restaurant Brands International and Domino's Pizza.

    YUM performance compared
    Company1m3m6m
    Yum! Brands ($YUM) 9.00% 11.70% 19.80%
    McDonald's ($MCD) -2.10% 3.10% 17.90%
    Starbucks ($SBUX) 10.40% 19.40% 26.30%
    Chipotle ($CMG) -3.70% -1.20% 26.20%
    Yum China ($YUMC) 9.30% 8.50% 31.30%
    Restaurant Brands International ($QSR) 4.90% 10.30% 7.60%
    Domino's Pizza ($DPZ) -3.50% -8.20% 3.90%

    Important note:
    The opinions expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the particular situations 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 Opinions are provided for informational motives only

    Yum! Brands summary

    Tuesday, November 24th, 2020
    Open$105.68
    Close$107.19
    Day range$105.25 - $107.31
    Previous close$104.53
    Session gain2.54%
    Average true range$2.85
    50d mov avg$96.62
    100d mov avg$94.24
    200d mov avg$89.13
    Earnings dateFebruary 4th, 2021

    Frequently asked questions

    What is Yum! Brands stock symbol?

    Yum! Brands, Inc. is a public company trading in the US stock market with the YUM symbol

    Is Yum! Brands stock a buy or sell?

    Yum! Brands received 2 ratings in the last 30 days: 1 bullish, 0 bearish and 1 neutral.

    Will YUM go up?

    Yum! Brands had different price forecasts published by analysts in the last month setting the target price to $108.50. That is a 1.22% higher than the current price ($107.19).