Kellogg recently got a rating upgrade form analysts at Bank of America.
The analysts at Bank of America boosted their rating on the cereal maker’s stock to buy from underperform.
They also raised their 12-month price target for the shares to $75 from $53. This is based on a multiple of 17.6 times on earnings-per-share estimate of $4.26 of calendar-year 2021. This represents a 10% premium to the company’s peers, according to the analysts.
The analysts, led by Bryan Spillane, are expecting the Kellogg’s organic sales to grow +2.3% in fiscal 2020, and net sales to rise by + 0.1%. The analysts are projecting operating profit growth (excluding the Keebler divestiture) of +6%.
According to the analysts, Kellogg has taken measures to boost sales growth over the past two years, even as profits have lagged. The analysts are expecting things to improve further in 2020, as they believe that “disruptive actions” to propel growth have been taken by the company – something that should allow more room to focus on restoring profitability, according to the analysts.
“While there is still work to do in U.S. cereal, we view Kellogg as well positioned to drive sustained low single-digit organic sales growth going forward,” the analysts wrote in a note.
The Aroon Indicator for K entered a downward trend on February 15, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 143 similar instances where the Aroon Indicator formed such a pattern. In of the 143 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on March 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on K as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for K turned negative on March 04, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
K moved below its 50-day moving average on March 04, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where K declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
K broke above its upper Bollinger Band on February 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for K crossed bullishly above the 50-day moving average on February 22, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where K advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.764) is normal, around the industry mean (8.264). P/E Ratio (23.876) is within average values for comparable stocks, (27.781). K's Projected Growth (PEG Ratio) (4.557) is slightly higher than the industry average of (2.691). Dividend Yield (0.043) settles around the average of (0.033) among similar stocks. P/S Ratio (1.411) is also within normal values, averaging (28.005).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. K’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company, which engages in the production and distribution of cereals, cookies, crackers and frozen foods
A.I.dvisor indicates that over the last year, K has been closely correlated with CAG. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if K jumps, then CAG could also see price increases.