YUM trade ideas
YUM through 115 This stock has shown really good relative strength in the recent market volatility. with a bas forming under 115 I plan to buy aggressively thought that mark. Earning is about 2 weeks out.
YUM Cup and Handle BreakoutYUM is a name that holds up will in both up and down markets. Looks poised for a fresh breakout.
YUM breakout target $98Analysts’ recommendations
Of the 24 analysts that follow Yum! Brands (YUM), 41.7% have given the stock “buy” ratings, while 54.2% have given it “holds,” and 4.2% have given it “sells.” On average, analysts have set a price target of $95.05 on the stock, representing a potential return of 2.6% from its January 29 closing price of $92.67.
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Since the beginning of December 2018, Barclays, JPMorgan Chase, and Morgan Stanley have raised their price targets on YUM. Barclays has raised its price target from $94 to $97, JPMorgan Chase has raised its price target from $90 to $91, and Morgan Stanley has raised its price target from $90 to $97. However, on January 11, Goldman Sachs downgraded the stock from a “neutral” to a “sell” and also lowered its price target from $83 to $76.
Peer comparison
Of the 23 analysts that follow Domino’s Pizza (DPZ), 60.9% are favoring “buys,” while the remaining 39.1% are favoring “holds.” Analysts have given the stock a price target of $292.81, which represents a potential upside of 6.5% from its price of $274.85.
Of the seven analysts that follow Papa John’s (PZZA), 71.4% are favoring “buys,” and the remaining 28.6% are favoring “holds.” Analysts have set a price target of $57.50 on the stock, which represents a potential upside of 35.8% from its price of $42.33.
Valuation multiple
On January 29, Yum! Brands was trading at a forward PE multiple of 24.3x compared to 22.8x before its announcement of its third-quarter earnings results. The increase in Yum! Brands’ stock price also raised its valuation multiple. On the same day, its peers Domino’s Pizza and Papa John’s were trading at forward PE multiples of 28.7x and 28x, respectively.
Yum! Brands is currently trading at 25.0x analysts’ 2018 EPS expectation of $3.70 and 24.3x analysts’ 2019 EPS expectation of $3.81, with its EPS expected to rise 25.1% in 2018 and 2.8% in 2019.
YUM Weekly long term shortLooking to enter around 91. Daily looks good.
Chart used for my own historical reference.
Short YUM Brands when weekly RSI hits 75.5 and $100 target- Weekly RSI almost 75.
- 100$ resistance
- Lets see what happens
YUM Detected possible stock repurchaseYUM: yum! brands
2018-08-10 09:00:06
Detected possible stock repurchase
YUM Gartley pattern, butterfly pattern, and inside day!With the volatility is going wilder, I usually turn to some defensive stocks like consumer goods, retailers, and restaurants!
Here we got this YUM, the blue bullish butterfly pattern just hit the entry and formed an inside day;
Also, there is a bigger green Gartley pattern entry near 78.00.
Accordingly, if the inside day is able to break to the upside on Monday, it's the 1st shot to take some long;
With such defensive stock, we don't really need to put the out at the inside day low if you aren't trade with crazy leverage.
So, put the out below 75.00 and take some more from the Gartley will be my plan yo!
If the inside day breaks to the downside, the butterfly long doesn't exist anymore; but the Gartley remains available!
Let's see how it goes!
YUM!'s tasty long-term trendYUM! shows long-term growth and showed a relatively rapid recovery from the 2009 market collapse. As well, its drop during the Feb 'crash' this year was within the amplitude of its long-term wave-train. So YUM shows both long-term growth and resilience against market-wide crashing, big Long pluses!
SHORT YUM! BRANDSP/E - 24.76
BETA - 0.86
P/CF - 21.81
MARKET CAP - $28.08B
- An increase in the cost of employee wages, benefits and insurance on their mass workforce of 450,000 employees as well as other operating costs such as rent and energy costs have led to significant pressure on the company’s margins. A struggling yet competitive retail environment also puts pressure on the restaurants’ costs. Moreover, with continuous/relentless expansion and the high costs mentioned previously the company is prone to face profit margin pressure.
- Yum! Brands’ trailing 12-month return on equity (ROE) undercuts its growth potential. The company’s ROE of negative 17.7% compares unfavourably with the ROE of 16.8% for the industry, reflecting the fact that it is not that efficient in using shareholders’ funds. Cash flow wise as shown above, it trades 21.81x its cash flow and earnings wise it is trading nearly 25x.
- Yum! Brands’ global sales might be under pressure in the coming quarters, this is due to a slowdown in some of the international markets that it operates in. The company is highly exposed to various nations including emerging markets, which have been exhibiting decelerating growth for quite some time due to various macro headwinds. This might limit discretionary spending.
- Yum! Brands operates in the retail restaurant space that is highly dependent on consumer discretionary spending. Consumers’ propensity to spend largely depends on the overall macro-economic scenario. Although higher disposable income and increased wages are favouring the industry right now, it can change with the slightest disruption in any economy. The company, therefore, is highly vulnerable to the inconsistency of consumer discretionary spending. If it does not make pragmatic use of advanced technologies to innovate across it's value chains, it has a high chance of fading out like many other restaurant retailers.
NeroTree Capital rates Yum! Brands as a SELL with a price target of $73 over a 52w period.
YUM! Brands..not so yum after all.Trading is all about deep thinking, combining ingredients, knowledge, information and trying to solve a puzzle.
Every trade is different, every technique and strategy varies, and no set up is alike, only has similarities.
Today, Nasdaq collapsed..95% of its stocks were in the red.
Yum! Brands warned about this coming along with some other stocks 4 days ago when it couldn't carry itself anymore.
yum Looking quite bearishI'm pretty bearish on yum displaying many bearish signs. first target for me will be around 77.70 with max low targets around 74-72
YUM looks like another good day aheadThis Gap and Go pattern has potential for a pullback at 78.84 and hopefully can take off!
