Kraft Heinz Co (NASDAQ: KHC) CEO Downplays the Company’s Need for Acquisitions

It’s been almost a year since Kraft Heinz Co (NASDAQ: KHC) unsuccessfully tried to acquire Unilever NV (ADR) (NYSE: UN) at a cost of $143 billion. In a recent interview with the Chicago Tribune, Kraft Heinz CEO Bernardo Hees stated that the company does not rely on acquisitions in order to grow, but is focused on increasing shareholder value by growing revenues.

However, Hees did not rule out the possibility that the food company was looking for new acquisition targets given his comments that other industries were consolidating, while there was minimal consolidation in the food industry. He insisted that the company’s main focus was not on acquisitions, but rather was on creating value for its shareholders and customers through modernizing its products, and investing in manufacturing, distribution and marketing.

The company’s quarterly earnings are expected to beat Wall Street’s expectations by a significant margin despite the mildly positive results posted by key competitor Kellogg Company (NYSE: K) last week. The company is expected to report higher revenues than expected, which will boost its top line, while at the same time improving the company’s bottom line.

The company’s quarterly growth is expected to expand significantly, but it's annual growth is expected to remain relatively flat given the recent decline in consumer staples. The recent decline in the company’s stock price towards the end of last year up to date has caused the company’s valuation to decline, but this is expected to change by next year as consumer staples recover.

Based on the technical data and associated charts at the time this article was written, Stock Traders Daily has provided detailed trading plans, with integrated risk controls, to its clients. These plans will change in real time as prices move. To receive an update or to review the detailed trading plans associated with this data please review our Real Time Trading Report for Kraft Heinz.

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Technical Summary

Term →Near Mid Long
Bias Weak Weak Neutral
P1 67.58 68.89 68.30
P2 70.40 74.20 74.17
P3 72.06 79.08 79.97

Long Term Trading Plans for KHC

February 21, 2018, 11:52 am ET

The technical Summary and associated Trading Plans for KHC listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for KHC. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

KHC - (Long) Support Plan

Buy over 68.30 target 74.17 stop loss @ 68.04.
The technical summary data tells us to buy KHC near 68.30 with an upside target of 74.17. This data also tells us to set a stop loss @ 68.04 to protect against excessive loss in case the stock begins to move against the trade. 68.30 is the first level of support below 68.69 , and by rule, any test of support is a buy signal. In this case, support 68.30 would be being tested, so a buy signal would exist.

KHC - (Short) Resistance Plan

Short under 74.17 target 68.30 stop loss @ 74.43.
The technical summary data is suggesting a short of KHC as it gets near 74.17 with a downside target of 68.30. We should have a stop loss in place at 74.43 though. 74.17 is the first level of resistance above 68.69, and by rule, any test of resistance is a short signal. In this case, if resistance 74.17 is being tested, so a short signal would exist.

KHC Long Term Analysis

KHC EPS Analysis

KHC Revenue chart

KHC Growth rate - Quarterly

KHC Growth rate - Yearly