Out of big name, formerly “hot” tech stocks and into…food stocks? Does this make sense? Actually, it doesn’t matter if it makes sense. It’s what buyers and sellers gave us on on Thursday’s stock market blast downward whether it’s sensible or not. The rotation from hot to boring is what took place.
Not that there’s anything wrong with sleepy old food stocks — after all, they’re the bread and butter of certain value investors, so to speak. It’s just that after so many months of enduring windy media experts on Amazon
The stock hit a new 52-week high Thursday and the buying volume was greater than in about 3 months. With a price/earnings ratio of just 14 and now trading at just 1.33 of book value, it’s relatively cheap compared to, say, your average NASDAQ-100
After making a brand new 52-week high Thursday morning, the stock fell back along with the rest of the market. Someone forgot to tell Kroger executives that it’s impossible to compete against Jeff Bezos whose NASDAQ monster Amazon these days is operating Whole Foods
McCormick & Co.
The stock hit that higher high in the morning and then tracked back downward later in the day Thursday. Although it’s a red daily candlestick, this still counts as making a new 52-week high. Average daily volume for McCormick is just over 500,000 shares, relatively light for an NYSE equity. They’re paying a dividend of 1.22%.
Tupperware makes packages and containers into which food is placed. They’re headquartered in Orlando, Florida and trade on the NYSE.
This food-related stock is greatly benefiting from the stay-at-home, locked-down existence. You can put food into Tupperware products, place them in the fridge and take them out anytime you like. For many consumers, this has replaced going out to eat. The company’s earnings have not been good over the past 5 years and the short float is 8.29% — but, obviously, investors seem to think that business may be improving.
Tupperware’s weekly chart looks like this:
This is a remarkable kind of reversal shaping up. You can see how the stock was headed down for years and is now blasting off. This move above the weekly Ichimoku cloud suggests a strong change in direction may be in place now.
These are not buy recommendations. These are 4 food stocks that held in there Thursday while favored well-known tech stocks included in the NASDAQ-100 tanked.
Stats courtesy of FinViz.com.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.