MKC - McCormick swing trade opportunity

Conqueror · April 26, 2022, 5:00pm

This thread is based off the following comment from @Anonyman in the COVID Valuations thread:

COVID Valuation Removals: The Last Stand (Potential Swing Trade/Scalping Opportunities Discussion) Swing Trades

Another covid high flier is #mkc (McCormick & Company). It’s currently sitting at all-time highs and has a P/E ratio of ~37 compared to a historical P/E ratio of 15. And this is for a seasoning company. Their balance sheet is also unimpressive and doesn’t justify the high P/E. They have liabilities equal to approximately ~66% of their assets so they have a significant amount of debt. Also, I’m not sure how much of their growth is really sustainable. It’s possible that they have performed well these last two years because of the pandemic. Restaurants being closed and people having a lot more free time created the perfect storm for a rise in home cooking.

Looks like this might be a good target for a 3-6 month swing trade.

rexxxar · April 28, 2022, 2:59am

There might be a possibility for a short-lived downtrend soon…

But MKC has been growing in value steadily since before I was squirted.

As home cook meals and cooking entertainment keep growing in popularity, such tickers can only grow further along.
Regardless, a possible Double Top on the Monthly candles cannot be ignored.

It already dipped back down to -26% and is currently on a clear bullish trend…

Watch out for the 96 and 92 support lines.