Here is a breakdown on one of my favorite stay at home prospects. $MKC otherwise known as McCormick.
Current Price: $176.25
52/Wk High: $182.92
52/Wk Low: $112.225
Read below for the breakdown.
COVID-19 is forcing many to cook at home and well they need the spices, mixes, condiments, and pantries to do that. Well, McCormick & Company offers all of those necessities and is one of the best stay-at-home plays.
The company so far is doing great, is in virtually every grocery store, and is a household name. The stock has gone bonkers since COVID hit and I still think there is an opportunity in it.
So far the earnings have been great and just last quarter $MKC delivered a great earnings beat. $MKC reported a whopping $1.47 EPS beat versus the low $1.16 EPS consensus. Not only that but revenue came in stellar at a huge $1.4 billion.
The company is also positioned well for any oncoming headwinds with a great cash position. When last reported the company had a $185 million cash position, up 32.71% since last year.
Analysts, on the other hand, are not very bullish and only have an average price target of $157.50/share representing a disappointing 10.54% downside.
Although, we must take into consideration that the high price target is $187.00/share and the low is $121.00/share, so analysts are very divided on where the stock should go.
Big money though is very bullish with 82.41% being owned by institutions. Firms with top holdings are Vanguard Group, Blackrock, and State Farm Automobile Insurance Company.
In short, I believe the stock could run-up to the mid 180s due to increasing COVID-19 cases within the United States. Secondly, I think long term more people will eat in, out of fear due to the virus (at least until we get a vaccine).
Lastly, while I do not currently hold a position in the name I am consistently looking for a pullback to enter.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply opinion based on independent research.