Stockchase Opinions

The Panic-Proof Portfolio (Stockchase Research) Kellog K-N BUY ON WEAKNESS Jul 30, 2020

Stockchase Editor: Michael O'Reilly Looking for yield can be challenging, but K is a company that is proving its worth during the pandemic. An obvious household name, it often gets over looked, but it is proving to be a survivor. The company just upgraded its annual sales and profit guidance for the year as organic net sales are up 9% on the quarter. EPS beat analyst expectations by 32%. We like the dividend and feel it is secure. We would look to enter on a pullback near $67 and use $62 as a stop loss. Yield 3.21%
$70.740

Stock price when the opinion was issued

food processing
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

DON'T BUY

Plunged 29% this past week. Packaged food stocks have been hammered in this market. Cereal is not a growth business, but snacks are. Before the recent spin off, K saw 80% of sales from snacks like Pringles. So Kellogg's spun off cereals into a separate company. From 2019-22, snacks saw nearly 9% annual organic compound revenue growth (vs. cereal below 1%). But snacking has slowed. K forecasts only 3% revenue growth full year, much lower than 12 months ago. Then, these new weight-loss drugs will likely reduce craving for snacks. The street fears cash-flow problems and predicts more borrowing. So, he prefers Kellanova for its snacks over KLG (cereals), but wouldn't buy either.

premiumPremium content

🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Stockchase Premium

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

Driven by the legacy of our innovative founder, w.k. kellogg, the kellogg company is the world’s leading producer of cereal, and a leader in cookies, crackers, and savory snacks production. every day, our well-loved brands, delight families in more than 180 countries. with annual sales of more than $14 billion, our brands include cheez-it®, coco pops®, corn flakes®, eggo®, frosted flakes®, keebler®, kellogg’s®, mini-wheats®, pop-tarts®, pringles®, rice krispies®, special k®, and many more. Social media mentions are up 300% in the past 24h.