Chart of the Day: YUM! Brands Looks Tasty
The Chart of the Day belongs to the restaurant company YUM! Brands (YUM) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 4/3 the stock gained 7.27%.
Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. It operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 28.60+Weighted Alpha
- 23.45% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 13 new highs and up 8.14% in the last month
- Relative Strength Index 79.74%
- Recently traded at $142.90 with 50 day moving average of $131.38
- Market Cap $39.84 billion
- Revenue predicted to grow 6.40% this year and another 7.30% next year
- Earnings estimated to increase 14.20% this year, an additional 15.00% next year and continue to compound at an annual rate of 11.43% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 11 strong buys, 1 buy and 15 hold opinions on this stock
- Analysts have price targets from $125 to $170 with a consensus of $145
- Value Line gave the stock its average rating of 3 and an 18 month mid-point price target of $156 for a 10% gain
- CFRAs MarketScope has a 4 start buy rating and a 12 month price target of $151
- Zacks Comments: Yum! Brands’ first-quarter 2023 results are likely to gain from robust same-store sales growth, unit expansion and strong Taco Bell performance. The company is likely to have benefited from robust digital sales. In the quarter to be reported, we expect same store sales to increase 3.3%. In first-quarter 2023, our model predicts Pizza Hut, Taco Bell and Habit Burger revenues to increase 3.6%, 1% and 16.7% year over year to $253.3 million, $521.9 million and $147 million, respectively. However, our model estimates KFC revenues to decline 0.1% year over year to $659.1 million.
- 53,420 investors monitor the stock on Seeking Alpha
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.