Buy Alert: Kraft Heinz Co $KHC Bullish Case Ahead Of Earnings
Shares of Kraft Heinz Co (KHC) have been in a spiral lower since 2017. The stock topped out near $100 in January 2017 and has fallen almost non-stop lower. While the chart is nasty, there are signs of life as pro traders start to accumulate. First, the stock now pays a 5% dividend yield. With the 10 year yield trading below 2.50%, this makes for an attractive place to park money. Next, Buffet owns a large stake. Buffet rarely loses. Another big factor is the oversold metrics. Almost every technical signal shows an oversold condition with positive divergences starting to appear. This speaks of a coming move up for the stock. Lastly, investor sentiment is as bearish as ever on Kraft Heinz. When investors expect the absolute worst, it does not take much for the company to showcase some light at the end of the tunnel and see a short covering pop in the stock. With earnings next Thursday, signals point to an up-move coming. Calculations show a possible upside target of $41.00 from its current $32.00 price.