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Kraft Heinz: A Bullish Case Ahead Of Earnings

Published 05/21/2019, 03:01 PM

Shares of Kraft Heinz Company (NASDAQ:KHC) have been in a spiral lower since 2017. The stock topped out near $100 in January 2017 and has fallen almost non-stop. While the chart is nasty, there are signs of life as traders start to accumulate. First, KHC 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 and he rarely loses.

Technically Oversold

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 up move for the stock. Finally, 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 due, signals point to an up-move ahead. Calculations show a possible upside target of $41 from its current $32 price.
Kraft Heinz Company

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