Kraft Heinz Co. stock trades under the ticker KHC & has shown recent bullishness that traders & investors should take a closer look into.
KHC stock closed at $37.79/share on 2/16/2022, after a 3.19% gain on Thursday.
Kraft Heinz Co. KHC Stock’s Technicals Broken Down
KHC Stock Price: $37.79
10 Day Moving Average: $35.21
50 Day Moving Average: $35.87
200 Day Moving Average: $37.37
RSI: 66.2
MACD: -0.093
Yesterday, KHC stock completed a bullish MACD crossover, after breaking out above its 10, 50 & 200 day moving averages in the last 2 days.
They have been trading on higher than average volume this week, with three straight days of gains, after having a rocky start to 2022.
Their RSI is almost overbought, which will simmer down in the coming days as they begin to establish a new trading range.
KHC’s next test of resistance is at $38.12.
Kraft Heinz Co. KHC Stock As A Long-Term Investment
Investors may find KHC stock’s P/E (ttm) to be a bit rich at 46.1, but their P/B (mrq) is modest at 0.91.
Their Quarterly Revenue Growth Y-o-Y is -3.3%
KHC stock’s balance sheet will require a closer examination, with Total Cash (mrq) of $3.44B & Total Debt (mrq) of $21.81B.
They offer a 4.37% dividend yield, which may be unsustainable in the longer run, as their payout ratio is 85.6%
Still, 79.6% of their outstanding share float is held by institutional investors.
Kraft Heinz Co. KHC Stock As A Short-Term Trade Using Options
KHC stock has options that traders can use to take advantage of their price movements in either direction.
I am looking at the contracts with the 3/18 expiration date.
The $37.50 & $40 calls both look interesting, and have open interest over 1,000+ contracts each, making them very liquid.
For puts, the $42.50 & $45 contracts look appealing, but they are very illiquid, with under 100 contracts of open interest per strike price.
Tying It All Together
Overall, there look to be a lot of appealing attributes to KHC stock.
Investors will like their valuation & dividend yield, but will want to take a deeper dive into their balance sheet to see how sustainable those yields are in the long-term.
Short-term investors will like their current momentum, as well as the liquidity levels of their options contracts.
KHC stock is worth taking a closer look into, regardless of your trading style.
*** I DO NOT OWN SHARES OF KHC STOCK ***